GBPUSD took a dip over the course of two days from last week Friday to yesterday, Monday. As the market dropped drastically due to the fundamental impact, market stands still at the support level of higher time frames. We will look at H4 to further evaluate the intraday/swing positions on GBPUSD.

The market structure on GBPUSD is bearish. Market tapped the higher time frames support level and pounced back up. Currently, it is testing the H4 resistance. Being the bullish pressure being built in, we anticipate the break of this resistance to continue up. For a buy position, we will look for a minor support level of h1, which is at 1.3664. The target will be at the resistance level of 1.3800.

There is no indication of any trendline setup. The only trendline we see is a descending one, which is still above the price action. Once it breaks, the confirmation is enhanced for the market to continue bullish.

The retracement level of a golden level of 75-78.6% has broken out earlier, but market broke in again. Once market opens and closes above the retracement level, we have another buy confirmation.

Both the EMA 50 and 200 are in a bearish death cross and are still above the prices. After the breakout of both the EMA’s, the market rarely retested the EMA and is due to another retest for a correction.

The oscillators we use are the RSI and CCI. Both the oscillators bounced back from the over-sold region and are headed towards the neutralized levels. Right now, there is enough window for the market to move towards the neutral level.

The GBPUSD buys are decent from the levels mentioned on the charts. Break even the stop losses as soon as we are in 50 pips profit.

GBPUSD buys from retracement

Sep 21 2021