GBP/USD continues to be bullish
|GBPUSD after producing a Double Bottom made a bullish move on the daily chart. On its way, one of the daily candles breached the neckline of the Double Top. The price could have been more bullish after the breakout. However, the price rather had a consolidation around the neckline level. The price action on the daily chart has been choppy instead of being bullish. The buyers must have been waiting to get a bullish reversal candle on the daily chart. Yesterday's daily candle appeared as a Doji candle and today's price action suggests that we may have a strong bullish daily candle as today's candle. This is what the buyers were waiting for. If that happens, the buyers are going to take over the control on the pair as far as the daily chart is concerned.
Let us have a look at the Daily-GBPUSD Chart.
Chart 1 GBPUSD Daily Chart
The daily chart shows that after breaching the neckline, the price consolidated around the neckline. Yesterday's daily candle ended up as a Doji candle which may be followed by a bullish daily engulfing candle. If today's candle closes above the day before yesterday's candle's upper wick, it shall be considered as a Morning Star. A Morning Star is one of the strongest bullish candlestick patterns that the market produces. Considering these factors, the pair shall attract the buyers to go long on the pair.
Let us have a look on the H4 chart.
Chart 2 GBPUSD H4 Chart
The H4 chart shows that the price got caught within a horizontal range. The price had several rejections from the level of 1.2380, which was working as a strong level of H4 resistance. The level got breached by one of the H4 bullish candles today. The breakout candle was followed by another bullish H4 candle. This is an ideal chart to look for buying opportunities. The buyers may want to go long on the H4 chart at its downside pullback.
The H4 chart and daily chart both look good for the buyers. One thing that may work against them that the market is about to lose its momentum in some hours today. Nevertheless, if the pair closes this week with a strong bullish tone, the next week shall be a good week for the buyers. As we have discussed, a lot depends on today's daily candle, though. If things keep going like this, GBPUSD is going to remain bullish for some days.
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