GBPUSD long-term downtrend intact
In this article, we will take a look at the GBPUSD from higher time frames to actionable lower time frames
Multiple time frame analysis always begin with the monthly chart, we can see that the instrument is testing a strong long-term support confluence of the horizontal resistance near the long-term falling trend line 1.3500 where it got rejected. The last weekly rejection candle is one with the particular strength and has the pair pulled back to a critical level for a downside reversal 1.2700.
The weekly chart price action is a bit different then monthly view and we can conclude that the following next weeks will be the key for either a bounce and long trade entries or a high probability short trade entries for the GBPUSD medium-term.
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On a daily chart, we can see that the pair is retesting the support line 1.2900 which was previously broken. For the higher probability short trade entries we need to see a confirmed break below 1.2970 and below the horizontal resistance 1.2700. A break above the 1.3050 would lea to a reversal higherand a test of 1.3500. This is the key price action level for trading.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
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