GBPUSD has stalled at a very major level which is a monthly and weekly level, at the price of 1.3031. This area is also a demand area for the pair and has a major liquidity for the bullish momentum. Although market has been forming lower lows and lower highs, at such high timeframe levels, we anticipate a sharp move up. This current area, is our buy area and we will be taking a long position here.

Market is in a descending channel, which indicates that if the upper trendline is broken out for buys, the bullish continuation will prevail. On the other hand, the support trendline has been tapped by the market and there Is a potential for the rejection at the trendline at this point.

As we have drawn the fibonacci retracement level, the golden level stands aligned with the support level. This retracement would be our entry point. It should be noted, the golden area of retracement is aligned with the weekly and monthly timeframe, which makes it more strong than other levels. The bearish level needs to stall at this level.

Both the EMA’s are bearish and have broken out for sells. The death cross is also bearish. Now, at the support level, we anticipate the move up to retest the EMA. This retest would be our profit target.

Both the oscillators are in a bearish region, heading back towards the neutralized levels after tapping the over sold region. The bullish divergence is formed on both the oscillators, which makes it ideal to be aligned with other technical factors on the price levels. The divergence push is yet to be absorbed by the market sentiments on the charts, this is what we will be cashing on.

Technically, GBPUSD is at a prime level for buys and the anticipation for the move up is steep once the momentum is build.

GBPUSD has been at a monthly retracement level

Mar 14 2022

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