A few weeks ago, actually, over 1 month ago, I mentioned that the GBP/USD was nearing a critical area of resistance, and that I thought it may fall lower. As you can see on this chart below, the GBP/USD did in fact fall lower, and went nearly 300 pips after the large bearish Weekly bar.
The GBP/USD did fall, and it was not a surprise.
Sometimes currency trading is quite simple. If you had identified the resistance zone as a critical area, and you waited for the market to tell you that it might have difficulty pushing through this critical area (the Big Bearish Weekly Bar was a huge hint), then you probably would have easily bagged a few hundred pips on this trade.
Profitable trading can be very simple. Now that the GBP/USD is approaching this area again, what do you think may happen when it gets to that resistance zone again? My guess is that the currency pair will most certainly pause at this level, and if we see another bearish bar…… then it may be obvious.
