GBP Forecast: Potentially Rebound from an important Support level.
USD forecast: start losing Uptrend momentum.
GBP / USD Forecast: potentially Bullish reversal.
Fundamental Analysis
Dollar index looks to move defensive at its highest level at 91.00, after yesterday climbed from 90.27 (0.8% increase). Market sentiment against the Fed Rate Hike next period appears to be the reason behind previous gains. One important fundamental indicator for the dollar today is the rise in US Treasury Bonds and Retail Sales releases that are above expectations.
US bond yields have reached 3%, and the market is starting to assume that the US central bank will inevitably have to adjust the difference in its benchmark interest rate with the bond yield.
Next, the market sentiment sentiment against the Greenback will again be tested with the release of the US CB consumer confidence index later in the night (April 24). If the result is below expectations, it is likely that the Dollar Rally will be corrected.
Technical Analysis GBP / USD (H4)
GBP / USD is predicted to reverse climbing after earlier descending at an important Support level around 1.38500, according to the following Bullish indication:
The price is projected to decline to complete the Gartley harmonic pattern. Once the pattern is complete, there will be a great opportunity for the price to reverse up the hike.
Elliot's impulse wave projects a reversal level at the 5th point. Wait for the bullish reversal candlestick to show up around the Support level, to confirm the Buy opportunity (yellow circle).
The MACD indicator shows an ascending crossing, with an indication that Downtrend's momentum has revealed symptoms of strength change from Seller's dominance to the Buyer.
Position Opening Advice
Long Position Scenario (Buy)
TP: 1.40000 (plus 150 pips / 1500 points).
Entry: Buy around the 1.38500 level.
SL: 1.37750 (minus 75 pips / 750 points).
You can execute Buy instant orders or wait for prices to approach Entry level with Pending Order. Wait until the histogram (MACD line) moves up the red line cut (signal line) as confirmation.
Setting Risk / Reward ratio in this position is 2RR. Use trailing stop auto or manual (15 pips or 150 points) to secure position. Use also MM calculator for regular capital management and position is not over lot.
Disclaimer On
Update Position April 25, 2018
GBP / USD price yesterday still moving to finish the 4th Wave in time frame H4. Predicted, today the price will continue its decline. The bearish air is still felt at the time frame of H4 and D1, but price movement on H1 has started up against.
GBP / USD will try to come back down, approaching the nearest bottom level around Fibo 78.6%. Then, the price may go up to rebound up to finish the 5th Wave on the H4 time frame. The position of buy can be opened if there is a bullish reversal signal H4 today. But keep in mind the reversal confirmation that appears to be able to know the current price behavior.
