GBPUSD Major Forex Pair

Today, I see a promising setup on GBPUSD (Cable). My analysis of the daily chart is based on a straightforward supply and demand concept. The price has returned to a supply area after experiencing a bullish trend for the past 3-4 weeks. Over the last four days, the presence of smaller candles in the supply zone suggests a potential reversal trade.  

Let's Dig a Little Deeper

I’ve examined the 4-hour chart, and I’m pleased with the price action on this timeframe. The price made a strong move up to a major high, but it is currently stalling and has formed a rising wedge pattern. This pattern indicates a divergence on the Money Flow Index indicator - which looks promising.  

I will focus on the 4-hour timeframe to monitor this setup. If we break the rising wedge pattern, I will look for a short reversal trade back down to the previous higher high.

I will provide an update as more price action develops later today, so stay tuned!