Today on GBPUSD – Monthly, Daily and H4 charts support Long trades, but…

On the Monthly chart above, we could see price has conveniently broken above the very major fib. 38.2% retracement level @ 1.6427 – after two months of struggle. Price is now set to test the fib. 50% ret. level @ 1.7331. However, there is a critical resistance level – a previous distinct swing low @ 1.7050 (which we’ve highlighted using the blue broken line); this level might pose a major barrier for the current upward price move, and we might see price struggling against an intense resistance pressure. Please let’s keep this critical level in mind.

On the Daily chart above, yesterday, price decisively broke a very major resistance level – now previous year-high @ 1.6744 (which we’ve highlighted using the lower blue broken line) upward. This sustains our bias in favor of further price movement upward. However, the critical resistance level @ 1.7050 (which we’ve highlighted using the upper blue broken line) that was seen on the Monthly chart has been shown here, so as for us to fully grasp its proximity to the current price level: it’s not too far away, so, again, please let’s keep this critical resistance in mind.

On the H4 chart above, since yesterday, price has doggedly continued its rally – refusing to relax enough for any significant retracement; hence, the green horizontal line @ 1.6471, which highlights the most recent swing low has not budged since last week Friday (or since last month, so to speak). While all these sustain our bias in favor of an upward price move, as indicated by the most recent candles formations (a doji and an inside candle), we are probably about to experience a major downward retracement. Though the higher time frames support going Long, let’s be careful about taking a Long position for now.
The beauty of this particular method – discussed on this blog – is that the Hourly higher-high-higher-low parameter (and vice versa), to a very good extent, prevents us from making a right move at the wrong time.

In all, our analyses on the Monthly, Daily, and H4 charts support Long trades; but, again, we still need our Hourly charts – using Fibonacci retracement levels and important support levels – to seek promising areas to take our Long positions. Price pattern on the hourly must also be forming higher highs and higher lows. Please note that our aim is to buy a dip in today’s up-trend.

Also, PATIENCE is the key here: we need to patiently wait for the Hourly retracement. It might happen, and it might not.