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. Now after falling further below, GBPUSD has a strong support at 1.3750. At this level, we have an inverse head and shoulders pattern forming. If this pattern is validated, the upward move maybe 200-300 pips.

- Trendline: GBPUSD has formed a scissor trendline pattern. We have resistance and support trendlines. The descending trendline is still far up from where the market current is. On the other hand, we have a support trendline which lies perfectly in confluence with the support level.

- Retracement: At the support level, we have a retracement level of golden area of 75-78.6%. We might see a wick of GBPUSD at this retracement level to touch the support level and then start its bullish move.

- EMA's: EMA’s are bearish at this point. The reason being, earlier, GBPUSD broke both the EMA’s to the downside and now again, and left a correction for the retest. It is to be noted, EMA’s bearish death cross had been confirmed earlier. Our profit targets would be at the EMA retest levels.

- RSI/CCI: RSI and CCI reversed from their over-sold regions. The over-sold region has been over extended and RSI and CCI are at 30 and -240 level respectively. From this point onwards, we will wait for either a divergence formed for the bullish momentum or, oscillators continue to hover around at the over-sold region.

GBPUSD is a good bullish setup at the prices set on the charts. Earlier we mentioned if the support is broken out, we will wait for the next solid support to go LONG on GBPUSD. As now market is approaching that level, we will buckle our seat belts to ride the bullish impulse.

Another attempt to buy GBPUSD

Aug 17 2021

2