Today will be low volatility on the markets, the US celebrates Independence Day-a national holiday celebrated annually on July 4 on the anniversary of the US Declaration of Independence, but when it falls on a holiday (e.g. Sunday) it is celebrated on the following day.
- Independence Day in the USA
- Pound may gain to USD
- bullish engulfing on D1 and H4
The currency pair British Pound to American Dollar in March 2020 set an all-time low at 1.14. Since then it has been moving in an upward trend. In 14 months, the pair gained 2850p, establishing the maximum on 30 May at the level of 1.4250.
June was marked by quite sharp declines. Last Friday, we learned data from the US labour market. They were better than expected (850 vs 700), but by the end of the day the dollar lost against most major currencies, including the British pound.
On the daily chart, a bullish engulfing formation appeared – an bullish outsidebar.
Currently, the MACD oscillator has established a minimum and is rising … If the MACD is still in an upward phase, it may signal the pair’s return to growth.
On the H4 chart we can analyse the situation from the technical side in more detail. We will note that on the H4 interval already on Friday an upward outside bar (blue) appeared within the outside bar (red rectangle) from the Daily interval. The breakout of the price from this formation (H4) was accompanied by the appearance of an upward divergence.
To sum up – increases on this pair are very likely on the condition of closing the daily candle above the maximum of the outside bar from D1 and the growing MACD, and their initial range is the nearest supply zone 1.3950-60.
I recommend a description of the strategy used for this analysis:
ongoing analysis https://t.me/TradewithDargo
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