GBPUSD bounces from 1.4230 support and there could be a case for a bottom (how many times have we heard that before)
Oh how wonderful to wake up and start counting my profit from my buy order against the 1.4230 support I've been highlighting.
Oh how wonderful to realise I read it yesterday as 1.4220 so missed it completely and remain unfilled
I think my eyesight must be going. Note to self - increase platform font size. Gutted I am
Anyway. The support I've shown in recent pound posts has held and we've seen the price gain. The support came from the May 2010 low at 1.4229 and we've seen the support coming in just ahead around 1.4240, with a low of 1.4238
GBPUSD 15m chart
The picture now is very similar to the long trade I took from the 1.4500/30 level. For the gains to continue we need to see some of the upside levels broken and held.
The first of which is up here near the highs at 1.4320/25. It was support on the way down and has been resistance on the way up. We've been through it but haven't managed to stay above and that's the key element
If we do the next hurdle is at 1.4355/65
The price action down at the lows makes a case for a bottom but we've seen this picture many times over the last few weeks. A bottom develops, it's gives signs of hope and then the rug gets pulled and down we go
We can't let history pass judgement on each new day so we must trade it all the same way. The levels are defined and that's all that matters. If we don't break the upside then another test of the downside is likely. A quick return to the lows would spell trouble. It doesn't matter whether you think it's going to 1.40 or 1.50, 1.4230 -1.43220/25 are the two levels that define the play right now.
