- July 16, 2021
- Posted by: cabana-admin
- Category: Market Insights
General overview: GBP/USD bulls in control, taking on the higher bound grounds. The pound is higher by some 0.22% on the day so far after it rallied as far as 1.3718 overnight. US dollar on the back foot as investors rule out UK negative rates. The GBP/USD pair has limited bullish potential in the near terms. The pair remains on the front foot after three consecutive days of uptrend. Sustained trading beyond 200-bar SMA, One-month-old support line favor bulls. Multiple highs marked so far during January guard immediate upside. The pair is trading on the way to the positive trend. The bulls are creating the strong momentum in the market. The bulls are now playing at the front foot and targeting the upper side in the market. The ascending line is being created on the chart.
Technical overview: we can conclude from the technical point of view that market set towards the higher side in the market. As from the yesterday view we saw there is sudden downfall in the market. Even though this is a bullish wedge developing on the daily chart, it doesn’t mean it will breakout higher, it is just that the odds favor an upside break than a downside one. Consistent highs and higher lows is developing the pattern currently which means a break of the 1.3838 level. On the daily chart see the pair is currently trading at the level 1.3838 and indicator RSI is also lying above the 50 level and creating the bullish signals in the chart as MACD also travels above the zero line and create more bullish point of view for the buyer to buy at the current level 1.3838. on the 4 hourly chart we can also see the pair is travelling towards the buy side and the major SMA lines falls below the EMA lines and create the buy side on the chart.
Trade idea : We can conclude from the content that market will lead towards the buy side and we suggest our buyers to invest their amount for buy level at 1.3838 target will be 1.3880-1.3937 and stop loss will be 1.3750.