FX.co ★ GBPUSD Potential For Bullish Continuation | 20th July 2022

On the H4, with prices bouncing off the ichimoku indicator, RSI moving in an ascending trendline and price has broken out of the descending channel, we have a bullish bias that price will rise to the 1st resistance at 1.20469 where the 50% fibonacci retracement and swing high resistance are. Once there is upside confirmation that price has broken the 1st resistance, we would expect bullish momentum to carry prices to 2nd resistance at 1.21628 where the swing high resistance and 127.2% fibonacci extension are. Alternatively, price could drop to the 1st support at 1.19320 where the pullback support and 38.2% fibonacci retracement are.

Trading Recommendation

Entry: 1.20469

Reason for Entry:

50% fibonacci retracement and swing high resistance

Take Profit: 1.21628

Reason for Take Profit:Swing high resistance and 127.2% fibonacci extension

Stop Loss: 1.19320

Reason for Stop Loss:

Pullback support and 38.2% fibonacci retracement