In today’s review, we will consider the situation for the main currency pair GBPUSD. Apparently, the market is forming a bearish trend, which is moving within a large green channel.
For almost the whole of October, we observed an upward price movement within the green channel from its lower green wall to the upper green wall. In the second half of October, the price reached the upper green wall, after which it pushed off from it and began to gradually move in a downward direction in a zigzag shape to the lower green wall within a small yellow channel.
We are currently in the lower green area, but next to the upper yellow wall. If the bulls can break through the resistance level of 1.347, then in this case they will be able to take over the market and send the price to the upper green wall and the resistance level of 1.377.
However, if the upper yellow line is not broken, then we are waiting for a downward movement of the market to the lower green line. It is assumed that if the bears break through the support level of 1.330, then they will have a clear path to a lower support level, which is located on the lower yellow line.
In the first variant, when confirming the bullish movement, it is possible to consider opening deals for purchases. In the second option, it is worth considering opening sales deals, as there will be a bearish trend.