Bounce Up – Was I right?

Good Morning Dynamic Traders,

Hope you had good start to the week, and had a good weekend.

Last week I mentioned that it might be a good idea to wait for a short position till after price has broken below the support line on the GBPUSD. You will see in the day chart below that my advice would have paid off, because price hit the support line and bounced up.
You will also notice that price has now hit a major RN and this morning has been struggling to climb further (this is not to say that it won’t climb above the RN). There is also a Fib breather level at this point, which will also make life harder for price.













The plan of action now would be to wait for price to make its next move. To see whether price has what it takes to climb above the major RN or will it fail and drop. If it decides to drop, will it break below the support line?

What do you think?

Carpe Diem

Richard Monnery