On the daily chart of GBPUSD, price is moving inside a down trending equidistant channel. Besides that, we can also see that price is doing a “Lower High” and “Lower Low” each time marked in the chart shown above.
Currently, price is near the equidistant channel top which might offer some resistance.
At the moment, we don’t see any obvious turning point yet on the daily chart as marked in the orange flow. (Turning point refers to either a “V” shape or a “U” shape)
Let’s examine one step down to see what’s happening in the orange flow and see if we can look out for any clues in the H4 chart.
Multiple timeframe analysis is very important in Forex Trading (or any instrument that involves intraday trading). However, many think that it is a tough nut to crack. In Tflow®, we simplified the analysis by breaking it down into FLOW and TRIGGER. Thus we are able to trade in any timeframe, be it M1, M5, M15, H1 or H4 and even daily and weekly. It will be great to join us in the Free Educational Preview to know about how Tflow® is being applied.
On the Four- Hourly chart of GBPUSD, price is now moving inside the up trending equidistant channel (in green).
Price is now near the equidistant channel top and also at the Weekly Resistance level circled in the chart in green.
Next potential resistance to look out for would be the Monthly Resistance level at 1.5265.
However, to have a “low-risk trade” would be to go long when price is being supported at the bottom of the equidistant channel or with confluence of market level.
