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A Bullish Outside Bar Pattern Likely Change the Long Term Momentum

July 24, 2019 | 1:10 pm | The 5%ers' Blog > Trading Room
July 24, 2019 | 1:10 pm
The 5%ers' Blog > Trading Room

A Confluence of Bullish Outside Bar Candlestick Pattern and a Significant Support Zone

Wednesday  24/07/2019

GBP/USD has formed a bullish outside bar candlestick pattern in the H4 time frame.

We can see in the H4 chart how the last big green candle in the picture attached engulfed the previous four candles and closed at the highest.

If we look at the high time frames charts (W1 or D1), we can see that the price is bearish in the last one and a half years, since April 2018.

At the moment, the price just arrived into the support zone which originally was a demand that formed in April 2017.

The confluence of the bullish outside bar candlestick pattern and the significant support is a very powerful one.

It creates a great opportunity for buy position.

Below, there is a fresh demand created earlier today.

If the price retraces this demand, it will be the right time to open a buy position for GBP/USD.

The resistance above will be the first target for this position.

The source of this resistance is a supply level which formed on 04/07/2019.

After the price tested this supply three times it became a resistance zone.

The final target for this trade will be the fresh supply at the top.

The supply at the top is a very significant one, if the price will break this supply it means that the long term momentum has changed from bearish to bullish.









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