$GBPUSD - Heart-Shaped Box

The cable has been locked inside a heart-shaped box for weeks between the 38 and 50 fib. The daily is starting to form a sell reversal pattern but hasn't made the turn yet. On the lower timeframes, I'd expect to see more testing and buy into any selling around 1.2150-1.21. A buy reversal pattern on lower tfs would confirm this setup. If you look at the daily, you'll see a trendline break on the move up and this is now a retest.

I'm looking for a test of the channel highs and even a push towards the 61.8 fib. The weekly and higher timeframes are still in a downtrend and will look to sell rallies at key levels and sell reversal patterns.

Observe the 2023 wick lows on the daily, weekly, and monthly timeframes. This area will not go untested.

Remember, keep your risk low and manage your trades.

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