$GBPUSD just reached major support. Now what? The $GBPUSD has been in “free fall” but now has reached a major quarterly support. What will happen now?
Below is the Quarterly chart for the $GBPUSD. After the “BREXIT” vote, price got to the major quarterly support of 1.3940 and held that week. However last week, we broke this support and it increased the probabilities of getting to the next major support of 1.2827.
We just reached this support. Now the question is will we break this support and go the next major support of 1.1493? All the lower time frames are still very strong bearish so the probabilities are still high to break it.
In order for the support at 1.2827 to hold, price has to start to move up and change the sentiment on the lower time frames to bullish. The controlling time frame is the 120m. In order for the long term view of the support holding, the 120m has to change sentiment to bullish. Below is the 120m char
After the “BREXIT” vote, price has not gotten above the cloud where the sentiment will be Bullish. Therefore, in order for the Quarterly support to hold, price has to get above the cloud on the 120m. Until it does, the probabilities to break the support will be high.
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