Great Britian Pound after breaking above its previously made high 1.8970, has entered most probably in strong bullish trend on the intraday time frames. We expected a bearish reversal from the aforementioned level but GBP took high advantage of Australian Dollar weakness and dragged it towards 1.91523. We also anticipated the bullish side in our previous analysis that there were prominent signs of divergence being formed in four hourly and daily chart, but keeping previous 4-6 weeks in view where GBPAUD had reversed divergence twice and made highest highs in daily - indicated that there were chances of it breaking its previous high as well i.e 1.8940 and in case that happened along with getting a bullish closing above the aforementioned level, GBPAUD will lead its way to 1.91440. Eventually, nothing else but mainly 50% fibb retracement level in weekly became the only reason alongside intraday divergence to let the bears take over and drop the GBPAUD market. 

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

 GBPAUD has given us a closing below a key price action 1.89000, forming a head and shoulder like pattern in daily which is a sign of awaited bearish breakout but we cannot ignore the fact that the pair is standing above 38.2% fibb retracement level and exponential moving average 50 in daily. We are expecting the pair to move towards forming a neckline at 1.8937, which if broken above - would lead the market towards highest highs in daily and higher highs in weekly. In case GBPAUD broke 38.2% fibb to the downside and gave us an impulsive bearish closing below 1.8700-1.8680, then the scenarios would be all in favor of doves leading the market towards 1.85573 and 1.8410 i.e exponential moving average 200 in daily. 

GBPAUD

Sep 01 2021

Stop Loss -0.11%

Holding time 2hr

1.87300

Entry price

1.87090

Stop loss price

1