GBPUSD Possible Lower High/Downtrend Rejection

18 มิ.ย. 2020

GBPUSD overall is in a downtrend on the higher time frames (4H and above). We have added a Daily chart image with notes below this text.
Price is currently trading within a range (red lines) and has recently failed to successfully break out of the top of the range.
Price is in a small uptrend and close to touching the up trend line for a possible rejection and bullish continuation, or a break below.
We have marked two high probability scenario's with arrows on the chart.

Bullish scenario;
-Price tests uptrend and/or support level
-The up trend is in line with a support level (blue line) which would add confluence to a buy if we get a strong sign of rejection on the 1H or 4H charts, ideally a large bullish engulfing or pin bar followed by strong bullish momentum
-Targeting the HTF downtrend line/next resistance (red line above downtrend line) and possibly further

Bearish scenario;
-Price breaks below the uptrend line and support level
-Price retests the support level and/or uptrend line and rejects this area with strong bearish momentum candles
-Targeting the bottom of the range

We have a bullish bias on this pair, due to the break of the top of the range, we expect price to attempt to form a new lower high towards the HTF downtrend line but we always make sure to forecast many possible scenario's.

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