Vladimir Ribakov analyzes GBP/USD on the daily and 4-hour charts. The 50- and 200-day moving averages converge at a strong support zone, while recent wave breaks show bullish momentum. Two likely paths forward: a clean rally with a retrace, or a short-term trap move that still pushes higher.
Chapters
But technically speaking, what do we have on the pound dollar? So if you take a look on a daily chart, this volume profile zone managed to hold. On a daily chart, we have the beautiful zone of the dynamic 50 and 200 moving averages as a dynamic support. So theoretically speaking, this is a fantastic zone where we should see the pound dollar pushing further. On the 4-hour chart, The waves managed to break this range, which is another positive sign. From this kind of price action, there are two scenarios the price usually follows. Scenario number one, the ideal one: we actually get this momentum, get some retraces, and from there continuation upside with the break above the recent high. Scenario number two is that the price actually managed to make one more push, like. A trap or manipulative movement before it actually skyrockets. Pay attention that we have big volume profiles on here and slightly lower. The dynamic moving average we saw on a daily chart, 400, uh, 200 moving average on the 4-hour chart, is here as well. This is a strong demand area. These lows, demand area where the buyers took the control. Now all that is phenomenal zone. We as well have the rising supportive line, so even if that manipulative move does happen, it should be just to push the pound-dollar further to the upside.
