GPBUSD last time, moved without taking us with its position. Now, we have another trading setup which apparently is lucrative in terms of risk to reward ration and percentage return. We will look for intra-day or swing setup on H4 timeframe.

Market structure on GBPUSD is bullish right now, after it broke the resistance level of 1.3750. After the breakout buy, market is retesting the resistance turn support level. GBPUSD is forming a HH and HL at this point in time. We can take a long position at the current level based of the bullish market structure.

The retracement level of 50-61.8% aligns with the support level at 1.3740. This gives us an additional factor for the long position.

GBPUSD is in a wedge channel, priming to surge. The ascending support trendline was tested by the pair, ultimately rejecting it instead of a breakout sell. The resistance ascending trendline is our potential profit targer at the resistance level of 1.3812

GBPUSD is ranging within the EMA 50 and EMA 200. It recently broke the EMA 50 and has already retested it at the support level. Whereas, EMA 200 is still bearish and hovers above the current market prices. This EMA 200 retest could indicate partial profit taking. We anticipate the break of this EMA as it has engaged large order blocks from the support level.

Both the oscillators are at a neutralized level. RSI being at 53 and CCI at 3 respectively. Coming into perspective, the oscillators have emerged as a buying confirmation at this current support. The descending trendline breakout on CCI, if occurs, there will be a strong continuation.

GBPUSD provides a decent setup for longs. However, we have to keep our risk in watch. We have around 4 factors confirming our long position setup. 

Recall for GBPUSD for 120 pips

Sep 01 2021

Take Profit +0.77%

Holding time 1d0hr

1.37470

Entry price

1.38530

Take profit price

3