GBP Broke the 3-day high on Tuesday moving UP towards the 5-day highs and now reversing back down into the break...Tuesday's high probability set-up was an R120 pip low and then rising upwards, however price pushed down 116 pips on tuesday before reversing upwards breaking the 3-day range, and then moving higher.
Wednesday:- A high probability pattern would have seen Wednesday continue up into the highs @ 1.9660 before reversing down back into the 3-day break and 5-day 50% level.
A rising Weekly Trend would see Wednesday support price from the breakout and then rise higher on Thursday... (re-test support and verify support)
But this price action is ocurring at a faster rate:- meaning don't trade longs below the 5-day 50% level, because with a failure of the 3-day cycle highs and move back under the 5-day 50% level, GBP could easily move back down into Wednesday's lows....
Therefore:- the 3-day high break and 5-day 50% level should be used as an important support level:- Above and it's moving towards Wednesday's high (120 pip spiral low)
Below Tuesday's 3-day high break @ 1.9539 and trading longs open to Risk....
Posts
