My long term bias on this sterling pair is bullish, I think we will see a sizeable retracment from the previous rally down.
On the above daily chart, I have spotted a clear uptrend, highlighting the Higher highs and Higher lows. I think we could see this potential retrace back to the 4hour lower high which coincides with the 50% fibonacci level if price decides to decline in the short term.
If I witness candlestick rejection around this area (highlighted In blue) on the hourly chart I will look to enter long targeting the previous high of the fibonacci set-up and higher. However, if I witness this play I will only enter long if I can identify 5 clear confluences due to my technical strength scoring weighting the dollar stronger than the sterling.
On the above daily chart, I have spotted a clear uptrend, highlighting the Higher highs and Higher lows. I think we could see this potential retrace back to the 4hour lower high which coincides with the 50% fibonacci level if price decides to decline in the short term.
If I witness candlestick rejection around this area (highlighted In blue) on the hourly chart I will look to enter long targeting the previous high of the fibonacci set-up and higher. However, if I witness this play I will only enter long if I can identify 5 clear confluences due to my technical strength scoring weighting the dollar stronger than the sterling.