Has GBPUSD Bottom Out Or Is It Just Another Major Retracement?
GBPUSD H4 Chart
I have been waiting for a few weeks for the price to reach the bottom of the entire range at major support 1.2869 but that did not happen and it seems to be picking up again
This is mostly by market uncertainty over whether the Fed can raise the rate in September and now it is all about labor market condition to determine a rate hike in December this year.
This caused the dollar to weaken and since the price is already near bottom, traders may want to start buying the pound and sell the dollar at this stage.
In any case, the price has recently broken above a minor resistance zone as seen in that little blue zone which signals for further appreciation.
GBPUSD M15 Chart
To cut it short, I am waiting to buy GBPUSD as soon as it reaches the bottom of the minor rising trend channel where the previous resistance zone is (which now turns into a minor support zone).
There will still be a strong resistance as the price reaches major support turned resistance level at 1.3086 so that’s where I intend to take most of my profits.