GBPUSD - Possible H%S Forming, Breakout Will Determine Target!

Hello Traders Investors And Community, hopefully, everybody of you is doing well in today's market environment and welcome to this analysis about the current price action and formation forming in the GBPUSD, there are some interesting signs which I detected and make it clear that we will get a heavy breakout either to the up or downside, both scenarios can be traded properly after the initial confirmation. We are looking at the locally 4-hour time-frame.

When looking at the chart we can see that GBPUSD is still in an overall uptrend with a consolidation currently occurring since 26th march, I detected that the overall current consolidation is a potential head and shoulders formation, you can see its market in my chart with the blue neckline and its left shoulder, head, and right shoulder. The big importance of this formation is that it needs to confirm to be fully validated and to point the right target out.

The next time we can expect a touch of the blue neckline as you can see it in my chart. After this touch, we can expect GBPUSD breaking out in the bearish or bullish direction, the good thing now is both cases can be traded with entry after confirmation! The breakout has to be confirmed with high volume and in the best case with high momentum. After the breakout and confirmation happened we can set the trade with the proper target. It will be interesting to see how it will play out.

Currently, there is a higher potential given that we will break out to the upside because we are moving in an overall uptrend with its origins at 1.4118 before we built momentum to the point now, the bullish scenario will be 100%ed confirmed when we cross above the blue 100-EMA you can see in my chart. But please note that this does not necessarily play out, it is also in the possible spectrum that we confirm bearish as the correction takes longer than expected.

Thanks for watching, have a good start of the week and support for more market insight!
Let the market decide, it knows when to take off or break down.
In this manner: FAREWELL

Information provided is only educational and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: GBPUSD continued with the bounce in the support to reach the final target zones.