$GBPUSD | 1H Analysis Setup Update

$GBPUSD | 1H Long Trade Setup Update

● Overview: While the current trend is bearish, a potential long setup may emerge if GBP/USD finds strong support around the 0.786 Fibonacci retracement level. If buyers start stepping in at this zone, it could indicate a reversal opportunity, especially if price action breaks above the recent resistance at 1.2982 and sustains above the 200-period Moving Average (MA).

● Trade Details for a Long Setup:

- Entry: Above 1.2982 (once confirmed break and hold above support)

- Stop Loss: Below the 0.786 Fibonacci retracement level, ideally around 1.2950 to account for volatility.

- Take Profit: Initial target near 1.3035, with an extended target around 1.3100 if the bullish momentum continues.

● Supporting Indicators:

- Momentum Shift: Look for the Stochastic RSI to exit oversold territory, which could signal the beginning of a bullish reversal.

- Volume Profile: A thicker volume zone above current levels could act as support if price moves upward.

- Moving Average Crossover: A possible bullish crossover above the 200-period MA would strengthen the long trade setup.

● Outlook for a Long Trade: This setup is contingent on a confirmed break above 1.2982. If the market sentiment shifts and support holds, we may see a potential rally toward 1.3035. A sustained move above this level could pave the way for higher targets.

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$GBPUSD | 1H Short Trade Setup Update

● Overview: With GBP/USD trading below the 200-period Moving Average and the current momentum favoring sellers, the short setup remains favorable. The break below 1.2982 aligns with declining momentum and thin volume areas, suggesting a lack of buyer support.

● Trade Details for a Short Setup:

- Entry: 1.2975

- Stop Loss: 1.2994

- Take Profit: Targeting 1.2918, with a possible extension to 1.2875 if selling momentum persists.

● Supporting Indicators:

- Momentum Decline: Bearish divergence and declining momentum support a continuation of the downtrend.

- Volume Profile: Thin volume above 1.2975 suggests minimal resistance, allowing for potentially faster price movement downwards.

- Stochastic RSI: In oversold territory but no signs of reversal, indicating bearish momentum may continue.

● Outlook for a Short Trade: A firm break below 1.2982 could trigger further downside to the 1.2918 take-profit level, with a potential for extended targets if selling pressure intensifies. If the pair approaches 1.3035, caution is advised, as this would likely invalidate the short setup.