In today’s trading session, the GBP/USD pair rallied as high as 1.52217 before hitting a supply zone and forming a resistance. Right now we have two possible scenarios in this pair.
The daily trend remains bearish as 21 and 55 EMA’s are still pointing for downward movement so the rally acts as a minor retracement with 21 EMA acting as a resistance on the daily-time frame.
The 4 hours and 1 hour time-frame is in a bullish mode as 21 and 55 EMA’s are pointing upward for more buying but we have a supply zone which has made price form a resistance at 1.52217.
For buying confirmation, i implore we wait for a break of 1.52217 resistance or set a buy stop order with profit taking at 1.52582.
However we can execute a sell position due to a hammer price formation on the supply zone and aim 1.51658 minor support and a break of it will resume downfall to re-activate the overall bearish trend.