GBP/USD - Bullish formation with a good levels for a long position

GBP / USD H4 Our expectations: Rising trend, correction to diagonal support. Opportunity for long positions with stop 1.3166

Alternative scenario: If the price break below the multiple supports and keep its levels below them after a successful test of the breach is possible deeper correction first test of 50 periods and then 200.

Comment: Rising trend, correction to diagonal support. At these levels is also 23.6% Fibonacci of the movement, measured from the bottom of February 14 until the peak of February 27. Trend-confirming formation - Flag. In the last test at the bottom of the flag is formed a price action signal from the pin bar on support levels. Today, the price opened with a gap up, which was not filled - further confirmation of ascending sentiment. TD Sequential counted to 9 - bullish signal. 50/200 SMA are in a bullish formation.

For a more conservative entry, we are waiting for a flag break and test, then open a long position with a stop of 1.3166. For more aggressive, current levels are also appropriate to open the position.

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