GU: Buy Setup Near Strong Demand Zone Amid USD Weakness
With Hurricane Milton approaching the U.S., there’s a high probability of the U.S. Dollar (DXY) weakening due to economic disruptions and market uncertainty. This sets the stage for potential bullish movements in GBP/USD, particularly as the pair approaches a key support/demand zone on the Daily chart around 1.3030 - 1.31.
Key Technical Insights:
Daily Support/Demand Zone: On the Daily chart, GBP/USD is testing a critical support zone, which has historically provided strong buying interest. The presence of this demand zone suggests that price may bounce back if supported by technical confirmation.
Bullish Divergence on H4: On the H4 timeframe, a clear bullish divergence is forming with the Awesome Oscillator (AO). While the price is making lower lows, the AO is creating higher lows, indicating that selling pressure is weakening and a reversal could be near.
Trade Plan:
Entry: Look for confirmation with a bullish reversal pattern such as a bullish engulfing candle or a pin bar in the support zone before entering.
Stop Loss: Set your stop loss below the support at 1.30 to protect against false breakouts.
Target: Initial target around 1.33, with potential to extend higher if the bullish momentum continues.
This setup aligns with both technical and fundamental drivers, making it a strong candidate for a buy if the market conditions confirm the reversal.
GBPUSD GBPUSD GBPUSD
Key Technical Insights:
Daily Support/Demand Zone: On the Daily chart, GBP/USD is testing a critical support zone, which has historically provided strong buying interest. The presence of this demand zone suggests that price may bounce back if supported by technical confirmation.
Bullish Divergence on H4: On the H4 timeframe, a clear bullish divergence is forming with the Awesome Oscillator (AO). While the price is making lower lows, the AO is creating higher lows, indicating that selling pressure is weakening and a reversal could be near.
Trade Plan:
Entry: Look for confirmation with a bullish reversal pattern such as a bullish engulfing candle or a pin bar in the support zone before entering.
Stop Loss: Set your stop loss below the support at 1.30 to protect against false breakouts.
Target: Initial target around 1.33, with potential to extend higher if the bullish momentum continues.
This setup aligns with both technical and fundamental drivers, making it a strong candidate for a buy if the market conditions confirm the reversal.
GBPUSD GBPUSD GBPUSD Catatan
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