Cables spent its last few weeks on a bearish foot note, struggling on the monthly chart between 1.4250 and 1.3660 but unfortunately pound broke the weekly price action at the aforementioned level and provided us with a new weekly low at 1.35681 which pound actually broke above this Janurary. A double top structure on the weekly chart indicated prominently that a correction was on its way and the bears will be taking control of the market on short term unless major impulsive breakouts are provided below 1.36000-1.35681. As of for now the friday closing was our corrective wave 'c' and then taking a reversal from our weeky EMA50. According to the fibb retracement levels, we found a strong pull back from 50% fibb and had the market ending above 61.8% fibb. The friday closing for GBPUSD was also a struggle in itself on some brokerage charts where it hadnt yet broken above our EMA200. Its a week supply and demand zone on monthly and weekly chart but the structure formation and technical indicators are still in support of bulls. 

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

In the daily time frame GBPUSD completed its 5 wave bearish structure near 1.3570 and is now on a bullish correction with its wave a being completed at 1.37860. Wave b can reach to 1.3660 as a reversal and then provide us with a strong hawkish corrective wave c. Our targeted destination is 1.3920-1.3950 where our upper trend line to the bearish channel is situated. The bearish channel will be invalidated only if we found a breakout above our major resistance i.e 1.3950. Market may continue its bearish tone from our daily exponential moving average 50 as well for it might become a zone of bearish reversal but we will be keeping an eye on the market structure and breakouts from our major aforementioned levels and update our viewers further accordingly. 

GBPUSD D1

Jul 25 2021