The price has managed to break out from the triangle on the upper side as was mentioned last week. What we can see on the chart from Monday is the price formed bullish candles.
At the end of the previous week, the price broke out from the triangle, which confirmed that the price had broken above the resistance line.
The price closed on Thursday above previous candles close which is an indication the GBP has the strength to reach higher levels.
But, on Friday the price returned back down which was the end of the week when the trades got out from the market. And it is also when the traders have cashed profits after a nice bull run.
What we can see now on the chart is the price on the support level at 1.35815. There is also a bearish Pin bar formed, but the pin bar is not on the resistance level. It is on support level so I am not looking at it as a significant candlestick pattern.
From the current position, we can expect the price to find support and to make a move higher to reach the next resistance level. The next resistance is at 1.37076, but the first level price is forecasted to reach 1.36850.
That is the level that held the price before reaching the 1.37076 resistance level.
It is good to wait until the price makes a bullish price action signal from the current price level. That could be on the 4-hour time frame so check once a while if there is a signal that would indicate the future move up.
The stop loss level would be at 1.35200 which is below previous lows.
Take profit is at 1.36800 as the first take profit level and 1.37076 as the second take profit level.
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