FX Forecast - GBPUSD H4 Long
Our expectations: End of bearish trend and upward correction. The price has reached a key levels of support around 1.31, and probably that could be a turning point for the cross. An inverse head and shoulders formation is activated, the price has returned to test the neck line, the zone is maintained and the upward movement continues.
Indicators:
Confirmed breakthrough 50 SMA, the price holds above.
Price below 200SMA.
DeMarker has turned above 0.3 and headed to overbought zone 0.7.
SL: 1.31 - The pitch is quite out-of-bound because, despite the activated promotion formation, false movements and test of a basic diagonal support are possible.
Alternative scenario: Breakthrough major support at 1.31, can lead to a large volume of short positions that could pressure the price heavily and subsequent sharp sales.
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