GBPUSD has been in a bullish trend since few days after its massive drop on Covid news. GBP is currently strong according to its fundamentals and index. We will look for a bullish setup on GBPUSD with the underlying facts in consideration.

- Market structure: GBPUSD has a bearish structure in H4, but bullish on higher time frames of daily, weekly and monthly. GBPUSD broke 1.3850 levels and potentially seems to be faking out as it is being dragged back above the support turn resistance turn support area. This support will be confirmed after prices leave the level and retest back.

- Trendline: The descending trendline has been broken just now with the force of a bullish candle. This trendline will be validated as breakout buys after the candles have opened and closed above. After the validation, we will wait for the market to retest the support where our long positions are set.

- Retracement: At the support level, we have a retracement level of 50%. The accuracy of this retracement is ascertained given the strength of the support level market is testing at. GBPUSD tested the 61.8% earlier, where it faked out. It was merely above the golden retracement area and wasn’t able to the completely test the 75-76.8% level.

- EMA's: EMA’s are at a crucial point at this moment. The reason being, earlier, GBPUSD broke both the EMA’s to the downside and now again, broke them towards the bullish side. It is to be noted, EMA’s bullish death cross had been confirmed earlier and at this moment, both the EMA’s are again at the deciding region for the death cross. If market continues moving up, bullish death cross will retain.

- RSI/CCI: RSI and CCI reversed from their over-sold regions. They continued to hover around the over-sold area till the CCI trendline support formed a divergence in line with the candles. The impact of the divergence can be seen on the charts as CCI jumped to 160 level from

-145. RSI is bullish as well at the given chart prices, signaling another bullish confirmation.

GBPUSD is a good bullish setup at the prices set on the charts. If market takes us out, there is lower level of retracement where we will buy again, which we will analyze in our later analysis when market reaches there.

GBPUSD for longs

Aug 11 2021

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