GBPUSD Establishes New Bullish Break of Structure

Market Analysis – July 29

GBPUSD price has established a bullish break of structure above the swing high of 1.2860. The Relative Strength Index (RSI) signaled an overbought market, leading to a retracement to the bullish order block at 1.2830.

GBPUSD Key Zones

Demand Levels: 1.2830, 1.2690, 1.2540
Supply Levels: 1.3000, 1.4000, 1.5000

GBPUSD Long-term Trend: Bullish

The GBPUSD bullish trend was initiated at the test of the supporting border of the parallel channel, evident on the 24-hour timeframe. The swing lows have consistently produced swing highs, forming a neat bullish market structure.

The price ascent pushed above the swing high of 1.2860, establishing the bullish stance prevalent in the market. Shortly after, the price tested the resistance border of a large parallel channel at 1.3000, causing a pause in the ascent.

GBPUSD Short-term Trend: Bearish

After reaching 1.3000, the market experienced a healthy correction to the order block on the daily chart. While the long-term trend remains bullish, the lower timeframe trend is bearish due to the retracement on the higher timeframe. The smoothed Heikin Ashi candles resisted price ascents and continued the price decline into the demand zone. A shift in market structure is anticipated on the lower timeframe to establish optimal forex signals with a high risk-to-reward ratio.

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