The GBPUSD currency pair has experienced significant gains in recent sessions, with the price breaking out of the consolidation zone at 1.3420 and then validly breaking out and soaring significantly higher. This impulsive movement was supported by the price positioning above the 50-day Exponential Moving Average and the middle Bollinger Band, as well as the MACD successfully breaking out above the signal line, further strengthening and confirming that this bullish trend has healthy momentum. The breakout from this compression area indicates significant buyer accumulation and buying interest has returned to dominate the market after a lengthy consolidation phase. Now, the price is approaching the supply zone at 1.3550, so it is likely to experience a rebound or slight weakening as a natural correction. If it manages to break through the resistance at 1.3650, the bullish trend will strengthen and potentially continue rising with higher targets.
Looking at the H4 timeframe, the price is currently at 1.3530, which has touched the upper Bollinger Band area. Although it hasn't yet indicated extreme overbought conditions, as the price continues to rise with a dominant bullish candle. Touching the upper band in a strong trend is often not a reversal signal, but rather an indication that buying momentum remains very strong and volatility is increasing upward. The next resistance area is at 1.3610, which is both an intraday supply area and a psychological level. If the price rises and tests this area with a rejection signal such as a bearish engulfing or pin bar, this area can be used to seek price correction opportunities by entering a short-term sell position with a limited target. However, caution must be exercised, as going against the main trend carries a higher risk. The price position on the H4 timeframe is still quite far above the 50-day Exponential Moving Average and the middle Bollinger Band, indicating that the bullish trend on the lower timeframe remains very solid and aligned with the trend on the higher timeframe. Likewise, the MACD histogram appears very solid, with a very strong and consistent increase above the zero line and above the signal line. This indicates that the market is currently fully in the hands of buyers and there are no signs of significant weakening momentum. As long as the price can stay above the middle band and the 50-day moving average (EMA) on the H4 timeframe, any downward correction still has the potential to present an opportunity to seek a buy position in line with the dominant trend rather than forcing a sell position. The analysis on the daily and H4 timeframes both show a strong and synchronous uptrend in the GBPUSD market, so the primary bias remains strongly bullish. Therefore, I conclude that I will plan a trading strategy focusing on buying opportunities at this opportunity. The most ideal plan is to wait for the price to make a healthy correction and retest back to the breakout area around 1.3420, which now acts as new support or demand. Place a measured stop-loss at 1.3310 to anticipate false breakouts and excessive volatility. The profit target is placed at 1.3600, the next psychological resistance area. By waiting for a pullback setup like this, the risk-reward ratio becomes more proportional, and the probability of success is higher than chasing the price in the current supply area.
