The GBP/USD currency pair, on the H4 time-frame, was in a downtrend until the 31st of May when a lower bottom was recorded at 1.25592. Buyers found the price attractive and demand overcame supply.
After the bottom at 1.25592 the market broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator sliced through the zero baseline into positive territory and there was a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross. All of these confirmed the possibility of a technical trend reversal.
A possible critical resistance level formed with a higher top was recorded on the 5th of June near 1.27476. Sellers then temporarily pushed the price lower and a higher bottom was registering on the 6th of June at 1.26675.
If the GBP/USD breaks through the critical resistance level at 1.27476, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.27476 and dragging it to the bottom of the pullback at 1.26675, the following targets may be calculated. The first target can be anticipated at 1.27970 (161 %). The second price target can be predicted at 1.28771 (261.8%) and the third and final target may be expected at 1.30066 (423.6%).
If the bottom at 1.26675 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the GBP/USD currency pair on the H4 time-frame will remain bullish.
After the bottom at 1.25592 the market broke through the 15 and 34 Simple Moving Average, the Momentum Oscillator sliced through the zero baseline into positive territory and there was a crossing of the 15 and 34 Simple Moving Averages, called a Golden Cross. All of these confirmed the possibility of a technical trend reversal.
A possible critical resistance level formed with a higher top was recorded on the 5th of June near 1.27476. Sellers then temporarily pushed the price lower and a higher bottom was registering on the 6th of June at 1.26675.
If the GBP/USD breaks through the critical resistance level at 1.27476, three possible price targets may be projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1.27476 and dragging it to the bottom of the pullback at 1.26675, the following targets may be calculated. The first target can be anticipated at 1.27970 (161 %). The second price target can be predicted at 1.28771 (261.8%) and the third and final target may be expected at 1.30066 (423.6%).
If the bottom at 1.26675 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the GBP/USD currency pair on the H4 time-frame will remain bullish.