Although on higher timeframes, GBPUSD still seems bearish, on H4 the structure has drastically changed towards bullish bias. Market started forming HH’s and HL’s and broke the major swing resistance point in order to continue up. After tapping the prices at the resistance level of 1.3670, market tends to be taking a break. The resistance has not been breached yet, but given the previous tests of the levels, we anticipate the break. H4 has a minor support at the level of 1.3730. This is the area we will be looking to go long, influenced by other factors.

As drawn on the charts, markets seem to be in an ascending channel. To go up, it needs to test the support trendline. Once tested, it will confluence with the support level. Then we will continue to go long till market tested the upper channel.

The 75-78.6% retracement level is in confluence with the support. The price of the retracement level is at 1.3730 If market tests this level, we will see a confluence with the support level for the continuation up.

EMA 50 has had a bullish breakout and impends a retest, and 200 are in a bearish form, with a bearish death cross. At the support level drawn on the charts, we will see EMA 50 retest. This retest would add another factor of our technical to go long.

Both the oscillators are in a bullish region, hovering around the neutral levels. RSI at 58, and CCI at 100. With this current scenario on the oscillators, we need to wait for the them to be neutralized at their break even levels. Those areas would determine a good strength for the market to go long.

We will be looking for a long position on GBPUSD till the resistance level. If market breaks the support level, we will consume the losses prior to our stops being hit.

GBPUSD long position

Oct 18 2021

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