GBPUSD - It can stay bullish after Kumo retest
- The first Kumo attack at the end of February was not succesful, price turned back bearish. However the recent spike above 1,51 (end of April) not just caused a Kumo break, but also meant the break of the bearish trendline.
A Kumo breakout is confirmed when Price clears previous key supp/res, in this case 1,55. As you can see 1,55 resistance blocked further gains few days ago, and past Kumo blocked Chikou Span too.
- After the last few days pull back price reached Kumo support again
- If Price can hold above 1,5050 for few more days, then it an inverse H&S pattern development is possible too. In this case the measure tgt would be appr. 1,60.
- Heikin Ashi candle today signals a possibly decrease in short term bearish momentum, maybe a bullish reversal is ahead.
With the next confirmed Heikin Ashi buy signal I think we'll see the start of the next bullish wave sending GBPUSD back above 1,5500. Further bullish confirmation would be: Chikou Span to cross back above past Kumo and Kijun Sen to spike above Kumo.
For now 1,5050 - 1,5200 seems to be the zone to start accumulating some long positions.
A Kumo breakout is confirmed when Price clears previous key supp/res, in this case 1,55. As you can see 1,55 resistance blocked further gains few days ago, and past Kumo blocked Chikou Span too.
- After the last few days pull back price reached Kumo support again
- If Price can hold above 1,5050 for few more days, then it an inverse H&S pattern development is possible too. In this case the measure tgt would be appr. 1,60.
- Heikin Ashi candle today signals a possibly decrease in short term bearish momentum, maybe a bullish reversal is ahead.
With the next confirmed Heikin Ashi buy signal I think we'll see the start of the next bullish wave sending GBPUSD back above 1,5500. Further bullish confirmation would be: Chikou Span to cross back above past Kumo and Kijun Sen to spike above Kumo.
For now 1,5050 - 1,5200 seems to be the zone to start accumulating some long positions.
