GBPUSD pushed up hard since last week after rejected the weekly support. With such moves without retracements, the currency pair is bound to take a corrective move. For that matter, we need to evaluate the charts on the H4.

- Market structure: Market structure on GBPUSD is bullish, forming HH’s and HL’s. What we are speculating currently is the retracement move for the bullish continuation. For that matter, we are looking to short the market at the resistance area for an intra-day. The resistance level is strong which has previously been tested twice. The price level is of 1.3878.

- Trendline: As can be seen on the chart, GBPUSD is forming an ascending wedge. The resistance trendline has been tested once and might test a second time to bounce down. Secondly, we have an ascending trendline in the formation. With this trendline two episodes can take place. Either the market tests this trendline and continues bullish or, it breakout sells this trendline to reach our profit target.

- Retracement: The golden retracement level of 75-78.6% is in confluence with the resistance level at 1.3880. This confluence is formed perfectly with an overlap and will trigger the bearish volume. This is the area where we anticipate shorts, confirming the 2 confluence factors.

- EMA's: Both EMA’s are above the current price reflecting a bearish bias. This being said, we do have to note that the EMA 50 has been tested numerous times after the break. We might witness the EMA 50 confluence with the support area where we would target our profits. On the other hand, EMA 200 had recently been broken and is being retested. The EMA’s do not confirm any sells as of now. Based on H1, we do anticipate the retest of EMA 200 at the support.

- RSI/CCI: Both oscillators are in the bullish region, just ranging little below the over-bought region. There is no bearish divergence on the oscillators, hence no confirmation on the either oscillator for sell, until they reach the over-bought region at 75 and 150 respectively.

GBPUSD has a weak sell confirmation, as the trend is bullish right now. Two confirmations give us a low probability setup. If taken, do make sure to manage risk and bring the stop loss to break even as soon as the trade runs 30 pips in profit.

Attempting sells on GBPUSD

Jul 28 2021

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