The Pound
has been gaining a lot of ground versus the Dollar for today and it managed to
break above the 1.6800 level. On the one hour chart we can see how the price
broke that level and it is currently trying to pull back to the same level.
This is a very good example of how the Breakout and Pullback pattern should
look. First we see confirmation of the breakout and then a nice retracement
with the shape of a “dome”. This type of retracement has a higher probability
of working and if we see a visit to the 1.6800, the price may try to bounce to
the upside from there and continue going higher. The next resistance would be
the 200 period exponential moving average around the 1.6835 level.
That is a very informative article, thank you.
ReplyDeleteVery useful post, thanks.
ReplyDeleteI like the depth of your analysis and understanding.
ReplyDeletegreat analysis thanks
ReplyDelete