GBPUSD reversal after reaching strong resistance?

GBPUSD reversal after reaching strong resistance?  Date: 6 Dec 2019 

Queenie Wu

Trading zone: TMA channel range (1.31823 – 1.30782)

Consider Support and resistance:

We are approaching a very strong resistance level at 1.317 – 1.318

Strategy: Wave strategy at resistance level at the top of the channel

H4 Chart: Currently, GBPUSD at 1.3129, we are at the top of the TMA Channel.  One very strong bearish candle just formed.  Reversal is likely to happen

H1 Chart: 3 bearish candles just formed. 

We are likely to go forward to the bottom of the channel in H1 chart

Trend direction: use Identify trend indicator: DOWN in both H4 and H1 charts

Entry point: H1: Sell at 1.31268

Exit point: H1: We can use the Support level 3 and Support level 2 to exit at TP1 and TP2.    TP1: 1.31028   TP2: 1.30782  

Stop Loss (SL): 1.31681 highest point of previous candle

If SL is triggered, we may consider using breakout trendy strategy upward from the channel ceiling of H1 diagram.

Attention:  Tonight we will have non-farm payroll statistics announced.  If we are already earning profit before the statistics announced, we better settle our position first in case of big fluctuation during the period.

GBPUSD H4 one bearish candle just formed

 

GBPUSD H1 3 bearish candles formed

Result: TP1 reached.