Potential buy on GBPUSD

7 août 2022

As you can see price has been creating strong bearish momentum on the GBPUSD which has in turn given us a long descending channel. However, price is starting to give us some signs of a potential bullish reversal on the pair as an inverse head and shoulders pattern has started to develop, coincided with price giving us a strong wick rejection on that 1.17605 level of support. This could lead to price giving us our third touch on the trendline resistance after the completion of the right shoulder, on the head and shoulders pattern, which could then lead to a breakout. The bullish breakout will be confirmed once price breaks above the neckline of the inverse head and shoulders pattern which could lead to price rallying all the way up to the 1.36211 level.