16.05.202119:56 Forex Analysis & Reviews: XRP provides a bullish signal.

XRP/USD broke above $1.45 today and the important short-term resistance trend line. Price reached as high as $1.61 and is now pulling back towards $1.45. Today's price action is an important bullish signal for two reasons. Price has made an important reversal off the 61.8% Fibonacci retracement and broke an important resistance trend line and moved also above an important horizontal resistance level.

Red line - resistance (broken)

Blue lines - Fibonacci retracements

XRP/USD has started a new sequence of higher highs and higher lows. Support remains key at $1.20 area and bulls do not want to see price below this level. A break to new higher highs above $1,61 will be another bullish signal and a confirmation that bulls are retaking control of the trend. If $1.61 breaks now we expect price to at least reach the previous highs at $1.97 and most probably break it. Price action is starting to favor bullish setups as bulls are gaining control of the trend. $1.20 can develop to be considered an important major low if prices continue higher above $2.