Fresh demand zone ahead, possible retracement, a long opportunity.
Stuff to remember:
— First look for significant move, then follow it to its origins where you might find a suitable level to evaluate further
— Make sure the initial move is significant on the same timeframe as the one you use for viewing your candidate level most clearly
— Check the distance that price traveled before the trend ended, longer distances mean larger initial imbalances and improved probabilities in the future
— The strong initial move can contain a few small retracements but not so many that make this move slow and weak
— Avoid opposing levels on the same and immediately higher timeframes, prefer to have a clear road ahead for your trade to run
— Make sure your level is placed correctly (low for Demand, high for Supply) in relation to the big picture's important tops and bottoms
— Trading the first return of price to a valid "fresh" level carries the highest probabilities due to the larger imbalance
— A valid level is considered "fresh" if price has not returned to it since its creation. It has nothing to do with how old the level is
I think it is possible and it would pretty much depend on your strategy. I would personally wait until it reaches that level and see if the trend continues downwards or there are reversal signals but yes it can be safe buying in an uptrend overall.
Kuch
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Yes, that is setting up for a nice rebound, especially given the oversold condition in GBP.
Steven680928
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@Kuch, hi. Hope you ok. Just to get clarity if GBP is oversold does that mean one has to buy it or sell. Your response will be much apreciated