Earlier, we took profits on GBPUSD. Now, we are looking to buy GBPUSD again. GBPUSD has stalled at a very major level which is a monthly and weekly level, at the price of 1.3031, after which it started to form higher highs and higher lows, a bullish structure. 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. Currently, market is priced at 1.3200. This would be our buying area.

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.

EMA 50 has broken out for buys and is currently retesting the EMA at the support level which makes it a confluence area. EMA 200 is still above the market and needs to be retested. The retest of EMA 200 will be our potential profit targets. It should be noted, we are still in a bearish death cross with the EMA’s.

Both the oscillators are in a bullish region, heading back towards the neutralized levels after tapping the over bought region. The neutralized levels at the current support level are in confluence with the pressure of the oscillators indicating a bullish momentum. Therefore, it makes up for a strong bullish move upwards.

GBPUSD continuation of buys

Mar 24 2022

1