- GBP/USD’s playbook going to plan according to market structure.
- The bullish thesis remains in play from lower time frame support.
As per the prior analysis, GBP/USD Price Analysis: Bulls target a retest of weekly highs, the price had resumed the downside, as expected.
Cable is now presumed to hold at support for a discount and subsequently revert to the upside for a higher daily high.
Prior analysis
Weekly chart
As can be seen, the price is attempting to move up from support and would be expected to fill in both the monthly and weekly wick.
Daily chart
The daily chart could now be expected to see the price test the recent daily highs and move deeper into the supply zone.
1-hour chart
However, the environment is already bullish and the price is attempting to move higher from hourly support.
That being said, failures at the already hourly resistance could pressure the bulls back towards a significant retracement area that coincides with old hourly resistance.
In doing so, the bulls will have a discount to reengage to target a higher high on the daily chart.
Live market
As illustrated, the price has moved into the demand area for a discount.
On a break above the 21-SMA, the bulls would be in better shape and the price can be expected to move towards a higher daily high.