GBP/USD: Bulls are back on the driving seat, what next…

General overview: GBPUSD moved higher in Asia, printing fresh highs for the week. The pair moved higher highs in the chart. The forex space is dominated by the US dollar which has been licking wounds on Wednesday while US yields sapped momentum from its recent rebound. The bulls are towards the higher highs in this session. Bulls are on the march in Asia and moving towards the north side in this direction. The price action is moving towards the high side of the market. the pair is looking for the more bullish in this week. The pair is established more bullish this week. The price chart is showing more exhaustion and moves above the resistance level this time.

The monthly chart is showing signs of exhaustion at a critical resistance level in the recent dollar strength and the subsequent drop in the cable. However, there could still be some juice left in the price to the upside before a meaningful monthly downside correction but still market set towards the bullish side for the time while in the chart. The pair continues to trend higher within the confines of an upwards channel. We can confine the market momentum still in the buy-side and momentum price will need eventually higher confines within the upwards channel.

Technical analysis: we can conclude from the technical point of view the pair continues to trend towards the higher side in the market. To pick up momentum price will need to eventually trade above the upper parallel, an event that could unfold soon. If this happens, then the next major targeted area of resistance clocks in around the previous highs. On the daily chart, we can see the minor divergence in the chart as the price is traveling towards its high side and the indicator will travel towards its lower side. We can say the market travels towards its buy-side the bullish marabuzo candlestick is also forming and taking the market towards its higher side in the market. The MACD will also travel above the 50 lines and create the buy signals. The support line of the pair is 1.3627 followed by 1.3567 and 1.3727 followed by 1.3797.

Trade idea: We would suggest that go for buy at the level 1.3677 and the target will be 1.3827 -1.3927 Sl will be 1.3477.

 

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