FX.co ★ GBPUSD Potential For Bullish Continuation | 22th July 2022

On the H4, with prices moving within an ascending channel and above the ichimoku indicator, we have a bullish bias that price will rise to the 1st resistance at 1.20469 where the swing high resistance is. 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, 100% fibonacci projection and 127.2% fibonacci extension are. Alternatively, price could drop to the 1st support at 1.19320 where the pullback support is. Should price break 1st support, we would have a bearish bias that price will drop to 2nd support at 1.17599 in line with swing low support and 100% fibonacci projection.

Trading Recommendation

Entry: 1.20469

Reason for Entry:

Swing high resistance

Take Profit: 1.21628

Reason for Take Profit:

Swing high resistance, 100% fibonacci projection and 127.2% fibonacci extension

Stop Loss: 1.19320

Reason for Stop Loss:

Pullback support