GBPUSD – Price Respects the Patterns

04 Jun - GBPUSD 4 Hr

(Click on image for larger view)

Hi All,

This is just a quick update on GBPUSD. As mentioned on 30th May (see article) and 2nd June (see article), the price pattern gave a bullish signal – a double bottom which broke the neckline, followed by a pull back and a retest of the neckline. In the end, Price did respect those patterns gracefully (as shown above) and this is one of those occasions where I can say “This is a textbook set up”.

04 Jun - GBPUSD Weekly

(Click on image for larger view)

Now, looking at the bigger picture (weekly chart above), price looks like it is respecting a downward channel. The near term support looks to be around 1.56 and price looks to be heading that way with a potential of going a bit more. With that, I will ride the wave a little more.

Anyway, anything can happen in the market. So remember to trade by your rules.

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