GBPUSD is proving equity is currently flowing into UK against major currency pair as this pair is tracing out a bullish structure. Current price action is well below key resistance zone of 1.31899/1.32922 and may have been overbought. Our view is that there is strong case for price retracement going into the week.
However significant retracement is expected to be contained at 1.26612/1.26376/1.25788/1.25552 cluster support zone. Further penetration of said confluence support should bring further downside to 1.23551/1.22962 support zone.
Nevertheless, it is our view that retracement should be contained by black upward sloping trend line shown and after which a bullish engulfing candle, morning star, hammer, shooting star or three soldiers candle pattern should be trigger for long entry till key resistance target of 1.31899/1.32922 area.
However significant retracement is expected to be contained at 1.26612/1.26376/1.25788/1.25552 cluster support zone. Further penetration of said confluence support should bring further downside to 1.23551/1.22962 support zone.
Nevertheless, it is our view that retracement should be contained by black upward sloping trend line shown and after which a bullish engulfing candle, morning star, hammer, shooting star or three soldiers candle pattern should be trigger for long entry till key resistance target of 1.31899/1.32922 area.