FX.co ★ GBP/USD

Colleague, good morning. As you may recall, I have been contemplating a sell position on the GBP/USD pair for some time. Fortunately, I refrained from executing that trade, and I am currently feeling quite positive about that decision. Analyzing the daily chart through the lens of wave theory reveals the following insights: The 100-period moving average (MA100) is progressing at a modest trend angle of five degrees, indicating a general bearish sentiment for the week. The 18-period moving average (MA18) is operating at a more pronounced trend angle of forty degrees. This lighter moving average is approaching the local MA18 from below, suggesting the potential formation of a golden cross, which would signal a buying opportunity. All candlesticks are forming above the moving averages and the local Ichimoku Cloud, indicating a bullish sentiment for the pair. Currently, an inverted head-and-shoulders pattern is emerging from the candlestick formations. If my analysis holds true, we can anticipate a rise towards the 1.3030 level.

On Tuesday, the GBP/USD currency pair closed with a bullish candlestick, and the price is now testing significant resistance at 1.2800. This could lead to a potential rebound and reversal. However, it remains uncertain whether this will result in a minor correction or a complete reversal. On the hourly chart, we have established purchase targets. The first target is at the 161.8 level on the Fibonacci grid, corresponding to 1.2749. The second target is at the 261.8 level, which aligns with 1.2796. Both of these targets have already been reached. Additionally, there is a third target at the 423.6 level on the Fibonacci grid, corresponding to 1.2869.