We published an article on GBPUSD D1, keeping the four hourly chart in view, we gave our bearish indication on the pair and the market followed accordingly - missing our targeted destination at 1.38316 and reversing from 1.38755. We also assumed that the Cables stayed below and hasnt broken out of our weekly price action i.e 1.40000 . Recovery of cables 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. But now analyzing the market from a weekly perspective we have it stuck between two major price actions with highs at 1.39200-1.4000 and lows at 1.37200 which will be the deciding points for GBPUSD long term rally. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

In the weekly time frame, keeping the impuslive bearish wig which touched exponential moving average 50 and reversed - did actually break out of the price action but no bearish fractal confirmation has been found yet with a closing below our weekly low. The aforementioned statement shows strength being shared between both the bulls and bears in terms of neutrality on a temporary note. We have GBP Asset Purchase Facility, BOE Monetary Policy Report, MPC Asset Purchase Facility Votes, Monetary Policy Summary and MPC Official Bank Rate Votes which will be the deciding factors to the final mark of long term movement to the pair. Any permanent breakout found on the bearish side would drag the pair down to 1.36500-1.35900 while on the bullish side we would watch GBPUSD moving up to 1.40000-1.41000. Kindly maintain the same sense of neutrality for now by avoiding any biased opinions because the chart structure and price action after the release of news event will only clear the fog. 

GBPUSD IN A STATE OF AMBIGUITY

Aug 03 2021