### 1. Overall Trend & Market Context
- Bullish Momentum: GBPUSD is in a strong bullish trend, driven by DXY weakness (U.S. Dollar Index declining) and GBP strength. Key factors include:
- Fundamental Drivers:
- UK manufacturing contraction (less severe than expected) and rising housing prices.
- U.S. dollar weakness due to manufacturing slowdown (ISM PMI at 48.5), trade tensions, and fiscal concerns.
- Fed policy uncertainty (rates likely to remain unchanged post-May cut).
- Technical Drivers: Higher lows and higher highs on the 4-hour chart, indicating trend continuation.
### 2. Key Technical Levels & Patterns
- Support Zones:
- 1.3490–1.3500: A critical support area (pullback retracement, 61.8% Fibonacci level).
- 1.34420: Stop-loss level for long positions (below the liquidity pocket).
- Resistance Levels:
- 1.3580: Target for bullish breakout.
- 1.37370: Next major resistance (1:2 risk-reward setup).
- Patterns:
- Bullish Flag: Breakout above key resistance (1.3430) followed by consolidation.
- Broadening Wedge: High volatility pattern with widening highs/lows; potential for breakout (bullish or bearish).
- Bullish Engulfing: Confirmed entry after breaking key support/resistance.
### 3. Trading Opportunities
- Buy Zones:
- 1.3490–1.3500: Entry on breakout from consolidation range (1.3500).
- 1.35260: Buy limit for a liquidity hunt below minor intraday lows.
- Take Profit:
- 1.3580 (first resistance) and 1.37370 (measured move target).
- Risk Management:
- Stop-loss at 1.34420 (below support).
- 1:2 risk-reward ratio for long positions.
### 4. Key Risks & Considerations
- Bearish Scenarios:
- Failure to hold above the breakout zone (1.3500).
- Pressure from resistance at 1.3580.
- Return to consolidation range, delaying the upside move.
- Volatility: Broadening wedge patterns may fake out traders, emphasizing the need for strict risk management.
### 5. Fundamental Outlook
- GBP Strength: UK economic data (housing, manufacturing) supports GBP.
- USD Weakness: U.S. manufacturing slowdown, trade tensions, and fiscal concerns weigh on the dollar.
- Fed Policy: Markets expect rate cuts to continue, further pressuring USD.
### 6. Final Notes & Disclaimers
Stay disciplined, manage risk, and let the market confirm your trades. 📈
*Disclaimer: This is for educational purposes only. Trading involves risk; ensure you understand the risks before trading.*
- Bullish Momentum: GBPUSD is in a strong bullish trend, driven by DXY weakness (U.S. Dollar Index declining) and GBP strength. Key factors include:
- Fundamental Drivers:
- UK manufacturing contraction (less severe than expected) and rising housing prices.
- U.S. dollar weakness due to manufacturing slowdown (ISM PMI at 48.5), trade tensions, and fiscal concerns.
- Fed policy uncertainty (rates likely to remain unchanged post-May cut).
- Technical Drivers: Higher lows and higher highs on the 4-hour chart, indicating trend continuation.
### 2. Key Technical Levels & Patterns
- Support Zones:
- 1.3490–1.3500: A critical support area (pullback retracement, 61.8% Fibonacci level).
- 1.34420: Stop-loss level for long positions (below the liquidity pocket).
- Resistance Levels:
- 1.3580: Target for bullish breakout.
- 1.37370: Next major resistance (1:2 risk-reward setup).
- Patterns:
- Bullish Flag: Breakout above key resistance (1.3430) followed by consolidation.
- Broadening Wedge: High volatility pattern with widening highs/lows; potential for breakout (bullish or bearish).
- Bullish Engulfing: Confirmed entry after breaking key support/resistance.
### 3. Trading Opportunities
- Buy Zones:
- 1.3490–1.3500: Entry on breakout from consolidation range (1.3500).
- 1.35260: Buy limit for a liquidity hunt below minor intraday lows.
- Take Profit:
- 1.3580 (first resistance) and 1.37370 (measured move target).
- Risk Management:
- Stop-loss at 1.34420 (below support).
- 1:2 risk-reward ratio for long positions.
### 4. Key Risks & Considerations
- Bearish Scenarios:
- Failure to hold above the breakout zone (1.3500).
- Pressure from resistance at 1.3580.
- Return to consolidation range, delaying the upside move.
- Volatility: Broadening wedge patterns may fake out traders, emphasizing the need for strict risk management.
### 5. Fundamental Outlook
- GBP Strength: UK economic data (housing, manufacturing) supports GBP.
- USD Weakness: U.S. manufacturing slowdown, trade tensions, and fiscal concerns weigh on the dollar.
- Fed Policy: Markets expect rate cuts to continue, further pressuring USD.
### 6. Final Notes & Disclaimers
Stay disciplined, manage risk, and let the market confirm your trades. 📈
*Disclaimer: This is for educational purposes only. Trading involves risk; ensure you understand the risks before trading.*
Trade active
The safest Take Profit for now is 1.3637. I will update if anything changes.Trade closed: target reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.