GBPUSD has been making higher highs and higher lows since January this year. The high made on Friday 14th July on the back of poor data out of the US is the highest this pair has been since September 2016.
The GBP index (BXY) is trending up and the USD index (DXY) is trending down.
Price is trending above the 4 Hourly 21, 55 and 200 EMA’s.
Price bounced on the Weekly S1 at a 50% retracement, just above the Monthly M2 Pivot point on Wednesday 12th July. Pivot point theory suggests Monthly M2 to a conservative target of M4, potentially R2.
I am looking to long this pair after a retracement back to one of the following areas:
- 1.30280 – Monthly M3
- 1.29710 – Previous Structure High (multiple times)
- 1.29146 – Confluence of 38.2% Retracement of larger up move, 61.8% retracement of current swing
Conservative target will be the Monthly M4 (1.32500) which is also a 150% extension of the current move and an equal measured move of the previous leg up.