GBP/USD Up We Go as the Bullish SHS Pattern Emerges with the Pandemic Pattern

GBP/USD Technical Analysis

• Buying on a dip
• Bullish SHS pattern
• Consolidation-Breakout expected
• Pandemic Pattern on Daily

MEGATREND MAs: Bullish

Daily GBP/USD

1. Trend line start
2. Bullish resistance
3. Bullish bounce
4. Dragonfly doji
5. Target

The price is retracing. Daily price action suggests a bullish continuation. After the price has made a strong daily momentum bounce we can see Daily providing good buying opportunities with the Pandemic entry (learned on MEGATREND course – 90 % win to loss ratio).1.2530-70 is the buying zone. Watch for the M H3 and W H4 targets.This analysis is a part of the Megatrend trading course. FTSE has a large number of Natural Resources and Services companies in that listed exchange so the GBP is heavily influenced by the capital flows from the financing hub of London.

Construction PMI came above 50 today so it indicates the industry expansion. It’s as urvey of about 150 purchasing managers which asks respondents to rate the relative level of business conditions. The data for construction PMI is a leading indicator of economic health as the businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.

If the market manages to stay above the left shoulder it should bounce up. However, the loss of 1.2450 is bearish and the price on the cable is going to drop towards 1.2375. I am still buying the dips as the bullish movement should be next on the table.

For a look at all of today’s economic events, check out our economic calendar.

Cheers and safe trading,

Nenad