Let's look at forward-modelling GBP/USD... (Intra-day chart of GBP aobve)Weekly Trend is down and guided by the 5-day 50% level.
On Wednesday there are rises in the forward timeframe, this often suggets that the current timeframe (Tuesday) will have an UP bias, but that could be limited to around the 5-day 50% level.
What the interesting part is that Wednesday highs drop down, and close to the 5-day 50% level.
Therefore: - breakout traders will be looking how prices re-act to the Wednesday highs, because a breakout above would favour a Weekly timeframe that closes higher:- moves higher into Thursday range highs...
Wednesday's highs:- Resistance/ breakout..(trend defined by the 5-day 50%)
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