Today on GBPUSD – The bears reign under threat…

On the Daily chart above, since November, last year, the GBPUSD pair has been in a bearish mode – forming new lower highs and lower lows. However, current price action, which started on Friday, last week, is giving indications the bears might be losing their grip – at least for a while: Price was unable to move down close to – let alone break below – the most recent Daily swing low @ 1.5831 (which we’ve highlighted using the lower blue broken line). A break below the 1.5831 level would have suggested the bears were ready to push further downward. Also, price is yet to break above the most recent Daily swing high @ 1.6240 (which we’ve highlighted using the upper blue broken line). A break above the 1.6240 level would give a strong sign the bears have lost momentum.
As a result of the situation analyzed above, it’s reasonable to conclude that the GBPUSD is currently in a state of indecision. This indecisive mode is well captured in the current symmetrical triangle formation observed on the Daily chart.
Although, from a day-trade perspective, current price action is supporting a bullish bias more than a bearish one, we have enough reasons to be cautious of seeking Long trade setups. Moreover, the “gap” created as a result of the difference between Friday’s close @ 1.6020 and Monday’s open @ 1.6057 is expected to be closed-up – and that would necessitate a bearish move. Hence, more conservative traders might prefer to wait for a clearer coast before placing trades today.

On the H4 chart above, price has broken the most recent swing high @ 1.6109 (which we've highlighted using the blue broken line) upward. That shifts our bias in favor of an upward price move. However, we would also observe in closer proximity price’s action around the upper edge of the symmetrical triangle mentioned on the Daily chart. Again, we have enough reasons to be cautious of seeking Long trade setups for now, and more conservative traders might prefer to wait for a clearer coast before placing trades today.
The green horizontal line @ 1.5895 highlights the most recent swing low, and as long as price stays above it - in the absence of any new and higher swing low - our bullish or upward bias remains intact.

However, for more aggressive traders, 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.

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