Flags are
chart patterns that usually act as continuation patterns. If the trend coming
into the formation is bullish, then the asset has a higher probability of
continuing higher, but the price may actually break out of the pattern in any
direction. On the daily chart of the GBP/USD we can see that the price has
formed a bullish flag. It is called a bullish flag, because the trend coming
into the formation is bullish, but the flag itself has a small inclination to
the downside. The GBP/USD has really found a good support at the 1.3300 level
where we can find the 55 day EMA (purple line). In order for the bullish trend
to continue, the price must break above the 1.3600 level. To the downside, the
1.3100 level could become a good support along with the 200 day EMA (blue
line).
Great analsyis as always!
ReplyDeleteExcellent assessment, I'll keep it in mind.
ReplyDeleteGood to know.
ReplyDeleteThank you for pointing that out.
ReplyDeleteWell spotted! I'll keep it in mind.
ReplyDeleteGood point! I´ll be waiting for a trigger.
ReplyDeleteI agree with your analysis.
ReplyDeleteThat's good to know, thanks.
ReplyDeleteGreat post! Thank you!
ReplyDelete