Hi Traders,
Happy Monday.
Today we are looking at a double bottom pattern that has been playing out on GBPUSD – 4-Hour TF.
I have highlighted the yellow NECK ZONE that we were watching.
We were waiting for the price to break up and close above the neck zone.
We then wanted to see the price retrace back into the neck zone before entering into a long position.
Our targets are previous support. Looking left, we can see that price did indeed pierce up to our target.
Another bit of confluence for this setup was the full divergence that was displayed on the MACD.
We have sellers weakening out even though the price was pushing lower.
We can see this on the MACD Histogram as well as the MACD MA Lines.
Happy Monday.
Today we are looking at a double bottom pattern that has been playing out on GBPUSD – 4-Hour TF.
I have highlighted the yellow NECK ZONE that we were watching.
We were waiting for the price to break up and close above the neck zone.
We then wanted to see the price retrace back into the neck zone before entering into a long position.
Our targets are previous support. Looking left, we can see that price did indeed pierce up to our target.
Another bit of confluence for this setup was the full divergence that was displayed on the MACD.
We have sellers weakening out even though the price was pushing lower.
We can see this on the MACD Histogram as well as the MACD MA Lines.