FX.co ★ KHALISA | GBP/USD

Good afternoon.It's been a pleasure reading your journal. I'd like to take this opportunity to share my views on the GBPUSD currency pair. In the previous session, I predicted a potential increase on the daily timeframe, given that the price had previously formed a double bottom pattern, which is synonymous with a reversal. This pattern is a classic formation that often indicates the end of selling pressure and the beginning of buyer accumulation. Consequently, this prediction has begun to be confirmed, with the price closing above the middle Bollinger Band, indicating the potential for a continuation of the uptrend. This strengthening is also supported by the MACD, whose histogram is consistently moving above the signal line and above the zero line, confirming that bullish momentum is beginning to take control of the market from its previous seller dominance.

Structurally, the market hasn't formed the ideal higher high and higher low formation, similar to the HH/HL pattern in a perfect uptrend. However, buying volume continues to show a significant increase. This momentum has pushed the price back up after previously falling to 1.3340. Currently, the price is around 1.3407, with the nearest ideal target at 1.3440, or even testing the upper Bollinger Band area around 1.3450. This condition indicates that buying pressure remains quite strong and the market is attempting to establish a new upward structure. Therefore, as long as the price can stay above the middle band, the opportunity for continued strengthening remains wide open with a fairly high probability. Furthermore, looking at the 4-hour chart, the decline in the previous session failed to break through the strong support level at 1.3300. This level, a previous consolidation area that served as a crucial defensive barrier for buyers, has proven to be very effective. This area was able to contain the decline and allow the price to rebound significantly higher in yesterday's trading session with a fairly solid bullish candle. The rejection that occurred in the support area also confirmed that buying interest around the 1.33 level remains very dominant. Therefore, any downward correction approaching this area is always exploited by the market to accumulate further buying. From this analysis, it can be concluded that the trend of the pound sterling against the US dollar has the potential to continue strengthening in the short to medium term. Therefore, a buy option is the most rational choice and is in line with current market conditions. For a measured execution plan, an entry point can be considered in the range of 1.3390 to 1.3400 with a safe stop-loss placed below the 1.3320 support level to allow for volatility. While the profit target can be placed at 1.3460, which is a psychological resistance area and close to the upper Bollinger Band. With a proportional risk-to-reward ratio, this setup is quite ideal to exploit as long as bullish momentum remains maintained.