A week ago I wrote about GBPUSD indicating the breakout from the Inside Bar and the high probability of drops, which occurred as expected and their range significantly exceeded the “plan” and amounted to 250p. Currently on the daily chart formed an Inside Bar, and both candles forming it have long lower wicks which may suggest a break out thru the top and an upward correction.
When you go to chart H4 you can see that there is a bullish divergence that supports a daily interval growth scenario. If there is a breakout and the MACD starts to rise on D1, it will be an opportunity to open a buy order. The target of the demand can be the support of the downward wedge that the price left, very dynamically, at the beginning of last week.
In case of a possible bottom breakout, the price may stop at the demand zone which begins at the level of 1.2040.
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