Earlier, we were stopped out by GBPUSD push down. 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 1.3080, 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. At this level of support, the market structure of double bottom completes. Currently, GBPUSD is consolidating since previously few days. It needs to get out of this consolidation in order to tap the resistance level at 1.3270, where our profit targets would be resting.

Market is in a descending channel, which has been broken out for buys and been validated by the price action. On the other hand, the support trendline has been tapped once again 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 retracement also support the H4 support level. The bearish pressure needs to stall at this level.

Both the EMA's are in a bearish trend and need to breakout for buys for further confirmation. Given the current situation of GBPUSD, we don't have a bullish technical factor aligned with the other factors. We might see a push up on NFP, which would breach both the EMA 50 and EMA 200, as they converge closely.

Both the oscillators are in a bullish region, heading back towards the neutralized levels. The oscillators are hovering around the neutralized levels. 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.

Consolidation needs to break

Apr 05 2022