Dear traders,

The Dow trading analysis from last time was not validated.

Price did not show any rejection after market open and just kept going higher.

Since then, Dow has been on the rise.

Currently, I am looking to see how it will react to the highs of 36,600.

Before that, there is pretty much nothing to do but watch and wait.

GBPUSD Trading Analysis 13.12.2021

In today’s analysis, I would be very careful of how I will approach this.

GBPUSD has been in a steady decline.

Hence, most traders would be bearish than bullish.

Having said that, there is a major demand zone from the weekly chart.

Price is under that zone.

What does this mean?

It means that even if price does not make a major reversal, there is a high chance it might try.

Now, couple this with a bullish engulfing pattern on the daily chart.

Correction: Three Bodied Bullish Engulfing

Which means that there are two bullish candles engulfing the previous day’s bearish candle and forming a 3 bodied bullish engulfing pattern.

I will certainly be on the lookout for this one.

One thing I will be looking for is a small correction towards 1.3230.

Then, I would be looking for a candlestick confirmation from the 4H chart.

If I see a bullish candlestick, I might decide to “pull the trigger”, but not before that.

Happy trading,

Colibri Trader

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