GBPUSD has been pushing down after the pandemic uprising in the UK. This week, there is interest rate data of UK, which we need to keep an eye at. That data will confirm the direction of the GBP.

Market structure: Market structure on GBPUSD is still bullish. The structure has formed HH and HL. Right now, market has slightly tapped the support level. This support level at 1.3850 is a solid support, which needs to be considered and highlighted. If this support is breached, then we may see a downside move. If it sustains, we will continue our direction as bullish.

Retracements: The golden area of retracement stands in confluence with the support, exactly at the 1.3850 level. This gives us an added confirmation to go for longs.

Trendline: The market structure is bullish. The ascending trendline had been broken our earlier. But, this does not mean that its going to dip just after the breakouts sells. if its broken downwards from the support., we still need confirmation for the structure break to go bearish. Following the trendline, we also need to look after the market structure, which is still bullish. Unless, the market falls below 1.3840, selling is risky given the structure.

EMA: Both EMA’s are bullish, currently, being below the current market prices. Both are near the verge of a death cross. Once this happens, our direction is cleared for buys.

RSI/CCI: Both the oscillators are bearish right now; slightly befofe. We will need to wait for either a divergence formed on either of the oscillators at over-sold areas, or they push up to the bullish zone levels.

At the mentioned trading plan, market has 2 confluences of support and retracement levels. We look for minimal of 2 confirmations before trading any setup. Ideally, we do look for 2+ confirmations. But given the bullish trend, the highlighted region can prove to be logical for long positions.

1.3850 make or break area for GBPUSD

Aug 03 2021

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