Initially I was bearish about GBPUSD. Please look at the 2 charts drawn on weekly and monthly.
Broke below key level 1.5233 on week close. However, subsequent week immediately reversed into a double bar (pipe candle). This week, price close above these 2 pipes, thus I’ve turned bullish.
I’ve checked into monthly chart, and found that price has not registered a close below key level 1.5233, although the month has not ended yet.
3 month 1234 pattern
It seems that at this moment, from weekly chart, the long term support 1.5233 is supported with double reversal bar and a bullish weekly close.
Therefore, from chart below, I will be looking at a retest back towards pt 2 to hopefully get a discount into some longs. However, if price trades above R1 (established as a cluster of resistance) then that will be very bullish for GBPUSD to head towards next few resistance including R2 (recent high) and R3 1.60 round number.
Do let me know if you like this kind of writing style, I’m trying to come out with something which can reach your objective
Update on 3.18pm 21 Sep
Do note the new black line which I’ve drawn. This is a recent level formed, but this level is an important historical level which I’ve mapped.
If price is hovering here, stay supported and refused to go down, then price is gathering strength to break above R1. Do watching out for some LTF 1234 around this level.
Updated on 23 Sep 2015, 4.39pm
There is a strengthening of DXY (US Dollar Index) thus USD strengthen, leading to fall in GBPUSD.
GBPUSD entered into the marked green zone for potential buy limit. I want to watch this zone for price action, fact that DXY has still quite some momentum upwards (although it has come to a resistance zone).
I’ve marked in another set of support zone (in black). This is really the last set of support. If this support gives way, then it’s sayora-na to GBPUSD. So I’m going to play conservative (although I did have a small portion of GBPUSD limit triggered in already at low, running with just a tiny profit).
See that chart which I’ve mapped as 1234. I hope to see 1234 formed with trigger. Will update via twitter or post (whichever is faster when I see that).