As anticipated on 25th July, GBPUSD has met our published analysis with its targeted destination being hit at 1.39650, that is where our monthly pivot was situated. Like gold and euro, pound also gained its strength from dollars weakness and Federal Reserves dovice statements yestarday with no higher projection for King dollar in the coming quarters. Cables still hasnt broken out of our weekly price action i.e 1.40000 but will make a stay and ask for more coal to burn its desire for moving any higher. Cables has also recovered based on the decline in cases of Covid-19 and the vaccination program is happening at a rapid pace with Brexit optimism as well. In the four hourly time frame GBPUSD has almost completed its impulsive 5 wave bullish move and we will be looking forward to a reversal in shape of bearish correction.

GBPUSD is expected to provide us with an 'abc' bearish corrective wave structure but only after its stay near its highs is completed for the market is still running its final wave. 1.14000 is considered to be a critical resistance and will provoke the cables for taking a ride for retest towards our upper trend line of bearish channel before making any moves higher. Worst case scenario would be a correction of a stronger degree that pushes GBPUSD back into our bearish channel and makes it continue dovish sentiments but even for that happen we would need a breakout below our weekly price action i.e 1.37000 and all the way below our exponential moving average 50 but chances to that are low and taking a bullish reversal from that zone are high. 

GBPUSD D1

Jul 29 2021