GBPUSD bullish prediction
Gbp/Usd has been bearish since June, 2021, after bouncing off from a key resistant level at 1.42500. this price level is very relevant as we have seen the market react at this level several times since 1987, where it acted as a support to the bullish run that started in March 1985. this level has since then acted as support in February 1993, June 2001, March 2009 and May 2010 respectively, but this level was broken in June, 2016 and since then acted as a resistance in February, 2018 and more recently in June, 2021.
The market closes last week at a support level created in March 2020 with a rejection, on this basis a BUY recommendation is suggested with the expectation that the Bulls will push the market from 1.14000 and break the weekly sell side liquidity at 1.21535. This sell side liquidity is expected to support the predicted bullish run after been broken. It is suggested that that this bullish run will continue till (TP @1.42500).
Entry suggestion
1. Entry can be taken from a lower timeframe, looking forward to a market structure shift or momentum shift from been bearish to bullish
2. Candlestick confirmation on Monthly timeframe (current candle closes as a Pin bar and/or a Bullish Engulfing candle).
The catalyst to this recommendation
1. Macro economics fundamentals (this analysis is purely based on price action only).
2. The market seems to have broken an established support level @ 1.19357. This level has acted as support since November 2016, August 2019, and March 2020 before been broken in August 2022. Therefore this level can further act as a resistance to further push the Pound downward.
Therefore a stop loss is recommended at 1.13000
The market closes last week at a support level created in March 2020 with a rejection, on this basis a BUY recommendation is suggested with the expectation that the Bulls will push the market from 1.14000 and break the weekly sell side liquidity at 1.21535. This sell side liquidity is expected to support the predicted bullish run after been broken. It is suggested that that this bullish run will continue till (TP @1.42500).
Entry suggestion
1. Entry can be taken from a lower timeframe, looking forward to a market structure shift or momentum shift from been bearish to bullish
2. Candlestick confirmation on Monthly timeframe (current candle closes as a Pin bar and/or a Bullish Engulfing candle).
The catalyst to this recommendation
1. Macro economics fundamentals (this analysis is purely based on price action only).
2. The market seems to have broken an established support level @ 1.19357. This level has acted as support since November 2016, August 2019, and March 2020 before been broken in August 2022. Therefore this level can further act as a resistance to further push the Pound downward.
Therefore a stop loss is recommended at 1.13000
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