FX.co ★ KHALISA | GBP/USD

Good afternoon. Permission to listen, and this time I'd like to share my views on the development of GBPUSD. Here, I'll analyze directly on the H4 timeframe, where the upward trend of the Bollinger Bands still maintains a bullish trend. However, a reasonable correction is currently underway. After the price briefly rose to 1.3540, it has now fallen to 1.3420, right in the previous resistance breakout area. Furthermore, the price has now touched the 50-day Moving Average, which currently serves as a dynamic support area. Given the still-upward trend and the price correction to a key area, there's a high probability the price will continue rising and bounce back to the previous high. This area also serves as a resistance (SR) flip, ideal for seeking buying opportunities in the direction of the trend. However, if we look at the MACD indicator, the histogram has currently broken below the zero line and is consistently falling below the signal line. This indicates that selling pressure has not completely subsided, and sellers are still trying to test the strength of the 50-day Exponential Moving Average area. If this area is broken out, or if the price falls below the horizontal support at 1.3300, the decline could continue deeper, heading towards the next support level at 1.3170. Therefore, the 50-day moving average (MA) area is crucial in determining whether the correction will end or become a temporary reversal. Using a trend-following strategy, I prioritize buying the option because it aligns with the main bullish trend. However, I admit there are no signs of a strengthening signal from the MACD. The entry area itself has already reached the 50-day moving average (MA), which is quite good, as it coincides with the SR flip area. Therefore, I'm currently waiting for additional confirmation from the MACD. If there is another increase, with the histogram breaking above the zero line or consistently rising above the signal line, this will be a strengthening signal for the buy option I will take later. The key entry level remains at 1.3420, with a stop-loss placed below the 1.3300 support level and a profit target at 1.3530, the previous high. With a measured risk-reward ratio and awaiting confirmation, the probability of the trend continuing is much higher. This concludes my analysis based on the H4 timeframe. I hope it provides a useful reference, and best wishes for continued profit.