The GBPUSD market recently experienced a price correction, pulling back to the bullish order block at 1.2690 on the daily chart. Buyers took advantage of this discounted price, leading to a surge in buying pressure. As a result, the price skyrocketed by 4.75%.
Nasdaq 100 August’s bullish impulsive price delivery was characterized by the formation of three white soldiers, indicating strong upward momentum. The price peaked at 1.32660 before forming a swing high, signaling the beginning of a retracement.
The Stochastic indicator revealed that the market was overbought at the swing high of 1.32660. Since then, the price has fallen below the 9-period Moving Average, indicating a pullback on the daily chart. As the price retraces, it approaches key support levels, where a recovery might take place. Traders can utilize forex signals to identify optimal entry points during this retracement phase.
GBPUSD Short-Term Trend: Bullish
On the 4-hour chart, the higher timeframe retracement appears as a potential bearish trend reversal. This reversal began with a head and shoulders pattern, followed by the formation of lower highs and lows. Two key regions are in focus to provide support and potentially resume the bullish trend. The previous swing high of 1.30450 is expected to offer initial support, while the demand zone at 1.28680, defined by a bullish order block on the 24-hour chart, could serve as a stronger support level.
Scalpers might look to trade toward the nearest support zone using the 4-hour chart as the primary trend, while using lower time frames for precise entry points. Swing traders, on the other hand, may wait for a bullish reversal at the support zones, targeting liquidity regions on the daily chart. Leveraging forex signals during this period could enhance trade decisions.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
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