GBP/USD Analysis on the 15-Minute Chart

In this analysis of GBP/USD, we’ve identified a key resistance zone highlighted in pink. This zone has acted as a strong barrier to price advances in the past, where sellers previously entered the market and pushed the price downward.

Currently, the price is below this resistance level, and while it’s not approaching this zone at the moment, our strategy centers on what might happen if the price revisits this area. Based on historical price action, there is a high likelihood that sellers could step in again at this resistance, leading to a potential reversal and creating a shorting opportunity.

Trading Plan:

Observation Point: Monitor the price as it fluctuates within its current range. If it eventually rises back to the pink resistance zone, we’ll look for signs of rejection, such as a bearish candlestick pattern or reduced buying momentum, as confirmation to enter a short position.
Stop Loss: Place a stop loss slightly above the resistance zone to minimize risk if the price breaks through unexpectedly.
Profit Target: If the price reverses from this resistance as anticipated, the initial target will be the next support level, where buyer interest might increase.
By planning ahead, this approach prepares us to react efficiently if the price reaches the resistance, allowing us to capitalize on potential market behavior based on previous patterns.