GBP / USD Rebound Opportunity, Wait Important Signal Near Support

Fundamental Analysis

Dollar index looks to move defensive at its highest level at 91.00, after yesterday climbed from 90.27 (0.8% increase). Market sentiment against the Fed Rate Hike next period appears to be the reason behind previous gains. One of the important fundamental indicators for the current Dollar is the rise in US Treasury Bonds and Retail Sales releases that are above expectations.

US bond yields have reached 3%, and the market is starting to assume that the US central bank will inevitably have to adjust the difference in its benchmark interest rate with the bond yield.

Next, the market sentiment sentiment against the Greenback will again be tested with the release of the US CB consumer confidence index later in the night (April 24). If the result is below expectations, it is likely that the Dollar Rally will be corrected.

Technical Analysis GBP / USD (H4)

GBP / USD is predicted to reverse climbing after earlier descending at an important Support level around 1.38500, according to the following Bullish indication:

The price is projected to decrease to complete the Gartley harmonic pattern. Once the pattern is complete, there will be a great opportunity for the price to reverse up the hike.
Elliot's impulse wave projects a reversal level at the 5th point. Wait for the bullish reversal candlestick to show up around the Support level, to confirm the Buy opportunity (yellow circle).
The MACD indicator shows an ascending crossing, with an indication that Downtrend's momentum has revealed symptoms of strength change from Seller's dominance to the Buyer.

Position Opening Advice

Long Position Scenario (Buy)

TP: 1.40000 (plus 150 pips / 1500 points).
Entry: Buy around the 1.38500 level.
SL: 1.37750 (minus 75 pips / 750 points).

You can execute Buy instant orders or wait for prices to approach Entry level with Pending Order. Wait until the histogram (MACD line) moves up the red line cut (signal line) as confirmation.

Setting Risk / Reward ratio in this position is 2RR. Use trailing stop auto or manual (15 pips or 150 points) to secure position. Use also MM calculator for regular capital management and position is not over lot.