GBPUSD has tapped the bottom on the daily timeframe, unable to break the previous low. Market has formed multiple bullish candles and lately, formed a bullish engulfing. That being said, H4 has formed higher lows which means, the potential to go up towards the next support turn resistance seems like a possibility. We are targeting the profit area at the level of resistance priced at 1.1930. Once market retests the previous low on h4 once again, we will hop on to the long position. 

Currently, the ascending trendline is acting as a support level and the market may reject this trendline, continuing upwards. On the other hand, we have the descending trendline which is still impending for the breakout buy. Once its broken, we will have a confirmation for the mark up.

The retacement level for the market for our long positions sits at the 61.8% aligned with the support level. 

EMA 50 is still bearish and market needs to retest it in order to flow its trend in either of the ways. We can potentially take profits at the resistance or the EMA 50, but we do see the EMA 50 as a threshold for our profit targets.

RSI is at 24. This means, market is in an over sold region which needs to be neutralized towards the 50 region, therefore, we have a window towards the bullish side. Rest aside, another tap down and we have the long position on.

GBPUSD another leg down to go up

Aug 26 2022