GBP/USD - support resistance??

[mholmes90]

Hi Guys,

This is my first thread on the forum. So hello to you all.
I am very new to Forex and am just getting started and learning as i go.

Below is an image of GBP/USD graph H1.

What i am asking is am i going in the right direction of my placement of support and resistence lines on this graph?

Is it likely that the price will fall below 1.6428?

Many thanks

Michael

 

[bbmac]

Cable testing y/day's lows=previous 1hr swing lo=previous support=potential support zone, bids/demand around there see-ing a bounce back to 6450+ at time of writing. Area is also the 50% fib of the 5795-7044 rise and a 4hr ascending potential support trend line, as well as the 50 day sma . At that level there was bullish oscillator divergence from price from 1min to 1hr so a hi-probability area to go long.

As for whether price will go below the level, no body knows, but if you are thinking of holding a long from the level see how the candles close on the t/f's above your trigger t/f and try and work out what is the nearest upside obstacle in terms of potential sbr and see how price reacts around it if it reaches it...remember that you are trading against a strong down trend that extends to the 4hr chart per overall price action-peak/valley analysis.


Below 6430/35 and there are no real price pivots on 1hr, 4hr or daily until 6361-34 area, but inbetween current lows and there are 2 x 61.8% fibs of the 5980 and 6031 rises to 7044 @ 6418 and 6389 respectively. Mni talking about bids @ 6410/6390 with stops below.


G/L

 

[mholmes90]

Thanks for the reply bbmac.

Trying to slowly get my head round all the forex lingo. Think i got the gist of you reply.