Getting Ready To Buy On A Move Under 1.25 ?

What lies ahead for GBPUSD? Personally, my focus is on identifying opportunities to buy during price dips below 1.25 towards the BUY/DEMAND area starting at 1.242. Here's why.


Back in June, I outlined a potential path for this pair following the breakout of the 1.24 weekly resistance level. I anticipated a minor retracement to that level and then a leg up towards the weekly SUPPLY/SELL zone at 1.305, I mentioned the most probable target for the move up was the resistance at 1.315. This actually played out to the pip lol (see related post)

We've had a strong rebound from the 1.315 resistance ,with price moving downwards ever since now approaching newly formed BUY/DEMAND zone that started the move up to 1.315 this area will likely draw buying attention.

Furthermore, this zone aligns with the previous resistance-now-turned-support at 1.24. This additional convergence fortifies the BUY proposition and bolsters my conviction that buyers will once again step in.

My strategy involves patiently awaiting a price descent below 1.25 and then deploying my TRFX indicator to identify signals on the 12-hour or daily charts.

I'll be monitoring the 4-hour timeframe for MACD divergence cues as we edge closer to the 1.24 region. Such signals would indicate a slowdown in momentum within a zone of significant prior buying activity, serving as an additional buying indicator.

Should substantial buying activity materialize in this vicinity, it's plausible to anticipate a potent upwards move on the weekly timeframe, potentially culminating in a new high, perhaps targeting 1.33 or even higher.

Initially, the target to watch for would be 1.275, which is likely to provide resistance. Here, I'll reassess price action to ascertain the next move. Should sellers reemerge around 1.275, it could trigger a descent towards the weekly BUY/DEMAND area at 1.20.

This is how I see things. I look at the bigger picture and remember that it could take a few weeks or even longer for my ideas to play out. If you want more info, check out my post from July about GBPUSD – it shows how I work. Hope this makes things clearer!