GBPUSD hit a two-week high near 1.2380 during the European session on Wednesday but struggled to maintain its gains and ended the day slightly lower. On Thursday morning, the pair continued to slip, moving closer to 1.2300, as signs of weakening upward momentum appeared. The US Dollar initially lost strength on Wednesday due to favorable market sentiment but regained support later as US Treasury yields climbed. Investors are now waiting for US jobless claims data, which is expected to rise to 220,000 slightly. A lower-than-expected figure could boost the USD, while a higher number might weaken it. Key manufacturing and services reports from the UK and US on Friday could help shape GBPUSD's direction for the rest of the week.
GBPUSD – H4 Timeframe
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When an Order Block (OB) causes the price to break structure with a massive impulse and a Fair Value Gap (FVG), the rule of thumb says we should anticipate the retest of the order block. This template seems to be replaying currently on the 4-hour timeframe of GBPUSD—hence, I have highlighted the order block region in hopes of a retest and a bullish entry. The presence of a trendline support confluence adds a cherry on top.
GBPUSD – H2 Timeframe
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The 2-hour timeframe chart of GBPUSD reveals the SBR pattern, which aligns perfectly with the 4-hour timeframe Order Block. The Fibonacci retracement tool places the expected zone of entry between the 76% and 88% levels.
Analyst's Expectations:
Direction: Bullish
Target: 1.24225
Invalidation: 1.21373
CONCLUSION
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