GBPUSD bottomed. 1 month of uptrend ahead.

16 Mar 2022The GBPUSD pair is flashing a strong buy signal today, as it is rising on the 2nd straight green 1D candle following a Double Bottom on the 1D RSI. Monday's low happens to be exactly on the Lower Lows trend-line (based on the recent December 08 Low) of the Channel Down that started in mid 2021.

As a result, if the price closes above the 1W MA200 (red trend-line), then we expect a roughly 1 month rise towards the 1D MA200 (orange trend-line) again, within 1.3500 - 1.3550. As you see on the chart, the 1D MA200 has been the natural Resistance since the pair broke below it on September 16 2021 with two rejections already.

On the other hand, if Monday's low is compromised with a 1D candle closing below it, we expect the price to seek the -0.382 Fibonacci extension instead at around 1.2750. Be ready to adapt and have your SLs accordingly.




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