Price on the 4 hour chart of the GBPSGD is retracing higher and back into a major daily resistance point to potentially make another attempt at breaking out higher. As my daily chart that I have below shows, after making a really strong an extended move higher, price has now moved into a sideways consolidation period with price stuck in this boxing type phase on the daily chart.
There is a lot happening in the markets at the moment. As I said to my members in the Members Only – Market Summary at the start of the week in the members area, there are a lot of pairs making moves and it is a super interesting market just at the moment.
We can see that with the GBP pairs as well; not only is the GBPSGD moving closer into a major daily resistance area and close to a potential trade setup, but if we look over at other GBP pairs in the GBPAUD and the GBPCAD, we will see that they have both recently broken lower through major daily support levels and could be in the process of retracing higher to potentially make a re-test of the old support and new resistance level.
Looking at the 4 hour chart of the GBPSGD below, you will see that price has just moved off the very clearly defined low. Price formed a Bullish Engulfing Bar = BUEB and has popped higher to now gain momentum and make a run higher.
If price can continue this run, it may push higher and into the overhead resistance. This could be a solid level to watch the price action behavior at on the intraday time frames, such as the 4 hour, 1 hour, or potentially smaller for short trade setups. Any potential trades would need to be confirmed with high probability A+ trade signals, such as the ones we teach in the members only price action course.
If price does continue higher, but breaks out and through the resistance, then the next resistance is overhead where you will notice a lot of candle wicks that all match up together at around the 2.1860 level.
Daily Chart – Boxing & Consolidation
4 Hour Chart – Bullish Engulfing Bar Off the Low
Related Forex Trading Education
– An Introduction to Trading the Bullish & Bearish Engulfing Bar
Leave a Reply