GBP Update – High Volume Breakout

GBPUSD Breakout

GBPUSD Breakout

In the last post, I noted there was strength behind that had been sustaining the prices, but further confirmation was needed to enter in a trade. In GBPUSD, the confirmation was the weak congestion zone being broken, but as prices were approaching it, there was some supply shown by a weak congestion bar. The reaction rally was on low volume, showing there wasn’t enough ‘gas’ to break the resistance. On the London session, prices broke out the lower zone at 1.316 and the support at 1.313 in the same hour, on very high volume, which was the definite confirmation of a bearish movement ahead.

Breakout GBPUSD M15

In the 15-minutes timeframe, the volume spike at the breakout usually signals further down movement ahead


While this market sell-off goes on, there isn’t much that can be done; there should be a consolidation or a price rally to start planning a trade in GBPUSD in the intraday charts.



KHALED said:

September 18, 2016 at 6:00 pm

hi Leonardo
price in GBPUSD H1- might rally as it approaches now the ( congestion zone – demand ) upwards to level range 1.30591, 1.30776 and from this range to drop down (short bias)…but if this range is taken out then the price might keep going up till level range 1.316 , 1.318 range and a reversal downwards might happen there (short bias) ….this is what I think …any correction and enlightenment will be very helpful ….please share your opinion with us

Leonardo said:

September 18, 2016 at 6:21 pm

Hi Khaled,

That is possible, but on such a sell-off I just wait to see what happens. If there’s a rally I might consider shorting, if VSA/volumes start showing supply or lack of demand.

KHALED said:

September 18, 2016 at 6:27 pm

agreed you are right …thanks leonardo…then we will wait to see the upcoming hours how the market will react

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