GBPUSD | A Bullish Setup in Making

Introduction:
GBPUSD is making a bottom in near term and we will see a good bullish reversal from the current price. Let's discuss the top points which support our stance in the pair


1. Descending Broadening Wedge:

GBPUSD has been trading in descending broadening wedge since the May'21. The price action has been respecting the wedge and can be use for support and resistance barometer. The current price is approaching to support zone which favors bullish reversal


2. Butterfly Formation:

A beautiful Harmonic Pattern is also supporting the bullish bias. Butterfly formation with leg CD is completing at the current level. The pattern is use to predict the reversal, hence bullish reversal on the card.


3. Bullish Divergence:

The indicators RVGI and RSI shows bullish divergence on the charts. These indictors historically predict bullish reversal when we have these divergences. Bulls have another positive point in it.

4. Moving Average 200:

The MA-200 is historically reactive to the GBPUSD. As visible on the charts, the pairs shows reversal on 14th Jan and 18th Feb. This indicator is trading far from the current price so we have the expectation the price will go and test it once again. In pips we are talking about atleast 300 - 400 pips.

5. March Favors Reversal:

March always favors GBP historically. The data below shows March has been the reversal point and the trend continues till June.


CONCLUSION:

The GBPUSD has more bullish points than ever. The risk to loss is very minimum and if you are long term player in forex market, this is the opportunity to accumulate. As discussed in detail above, the pair has the potential to move atleast 400 pips from the current standing.