FX.co ★ GBPUSD Potential for Bullish Continuation | 5th May 2022

On the H4, with price breaking the lower resistance of the Ichimoku cloud, we have a bullish bias that price will rise to our 1st resistance at 1.27247 where the swing high resistance and 50% Fibonacci retracement is from our 1st support at 1.25797 in line with the horizontal pullback support and 23.6% Fibonacci retracement. Alternatively, price may break 1st support structure and head for 2nd support at 1.24798 where the horizontal swing low support and 61.8% Fibonacci retracement is.

Trading Recommendation

Entry: 1.27247

Reason for Entry:

Horizontal swing high resistance and 50% Fibonacci retracement

Take Profit:1.25797

Reason for Take Profit:Horizontal pullback support and 23.6% Fibonacci retracement

Stop Loss: 1.24798

Reason for Stop Loss:

Horizontal swing low support and 61.8% Fibonacci retracement