Reversal of sentiments.
Let’s consider an H4 chart of GBP/USD trading instrument. The price has tested a daily support level (1.49359), but has failed to punch it eventually. This marks a sudden change of market sentiment in favor of bullish momentum. We emphasize that the significance of this mark is confirmed by historical values of Parabolic trend indicator, fractal of Bill Williams, as well as the lower boundary of the Donchian channel. However RSI-Bars bullish divergence is definitely the most remarkable signal which is observed from the beginning of January. Current bars are located in the vicinity of 58.8971% resistance level.
We suppose that a breakdown of this level may be a final confirmation of a counter trend movement. Most likely it will occur after the crossing of local price resistance 1.51339, which can be used for the BUY pending order placement. Risks should be limited below the daily fractal resistance (1.49359). After order opening, Stop Loss is to be moved after Parabolic values near the next fractal minimum. Thus, we are changing the probable profit/loss ratio to the breakeven point.
| Position | Buy |
| Buy stop | above 1.51339 |
| Stop loss | below 1.49359 |