Last Friday, markets had to absorb the market news of NFP. The figures were better than expected which resulted in a deliberate plunge in the USD, hence taking GBPUSD higher. After the news, the market normalized its course by building momentum for the continuation of the bullish momentum.

GBPUSD broke out the important support area at 1.3500 earlier and then broken back in. This developed the sense of the bullish momentum forming. Right now, as the market is moving up, we will wait for the correction to hop on to the buys again at the support level. It should be noted that market is forming higher highs and higher lows altogether and is still bullish on the higher time frames.

The descending trednline formed on the pair is still far off from the current price action. Once the market reaches the trendline, either it will retest or break the trendline, hence indicating the direction further. On the other hand, we are anticipating the move up based on the earlier trendline breakout buy which triggered the buy.

The golden Fibonacci retracement aligns perfectly at the support level. This confluence formed at 1.3530 is a strong one given the trend is bullish.

Both the EMA’s are bullish with a bullish death cross. Market broke out the EMA 50 and EMA 200 and is due a retest of either of the EMA’s. At the support level, we analyze the retest of the EMA 200. This will again add as a solid confirmation on our position. But the fact remains, the EMA’s are still down below and we are analyzing to take a long at the current market structure.

Both the oscillators are in a bullish region. The oscillators are heading towards their neutralized levels. RSI is at 63 and CCI is at -31. What this means is that CCI is already near its neutralized levels at the current support level, whereas, RSI still has room to move down towards the neutralized levels. At the support level, the oscillators should be neutralized, hence providing us with an additional confirmation to continue moving up.

GBPUSD bullish momentum building

Feb 09 2022

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