From a weekly and monthly stand point, GBPUSD has been bearish. On the daily, it still hasn't been able to break the previous low at 1.2550. This will act as a key level for the pair in ancitipation of a bullish run from this level. At this level, we have a solid support formed. If this support stands still, we may see a bullish run for the GBPUSD. On H4, it has formed lower lows and lower highs. If this support is breached, we will see another bearish leg towards the downside.

The golden retracement area of 75-78.6% is slightly above the support level. This retracement seems to be breaching, but until validated by the opening and closing of the candles, we cannot be certain of the market moving down. Plus, the support is just below the retracement.

GBPUSD has formed a bullish correction pattern of a bullish wedge. The support trendline has been formed and tested the three lows. Whereas, the resistance trendline is still far up from the current market prices. The retest of the support trendline will act as a confluence level with the support level. And once, breakout buys take place, we will have a massive push upwards.

With a bullish death cross of EMA's, both EMA's are currently bearish. The market broke the EMA's and still hasn't tested them back. With this bull impulse, we may retest or break the EMA's towards the upside.

Both the oscillators- RSI and CCI- are in an over sold area. This area has formed bullish divergence on both the oscillators. Given the price technicals, the oscillators completely confluence with our long setup on GBPUSD.

GBPUSD Bullish impulse from retracement

Nov 02 2021

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