GBPUSD MARKET ANALYSIS

 Good morning traders, it's the end of October and I hope your trading month has been profitable admist the major economic events that took place within the month. Into the markets today I'm looking at GBPUSD where price dropped to a key H1 & H4 demand zone at 1.21040 & 1.20561 which is the origin of the previous major rally to the H1 & H4 supply zone at 1.22724 & 1.22444. Price filled the H1 & H4 range from the key H1 & H4 demand zone to the H1 & H4 supply zone and back to the key H1 & H4 demand zone. Price dropped into the H1 & H4 demand zone at 1.20750 then rallied out of demand to the 1st high at 1.21500. Price retraced to retest demand at 1.21000 after a slight consolidation before a potential continuation of the rally. Took buy positions during London session at 1.21000 with SL at 1.20700. Setup taken is a drop base rally, a reversal setup and my target is at 1.22400.

Price gained momentum during London session rallying in 2 bullish H1 candles to 1.21300 then formed a weak bearish candle that became engulfed by another H1 bullish candle to 1.21400. Price has confirmed the bullish sentiment on H4 with multiple candle closes above demand and a strong H4 bullish engulfing candle. Price gained more bullish momentum during NY session rallying 60 pips to the 1st minor H1 high at 1.21700 confirming a shift in market structure to bullish. I anticipate a potential break of the minor H1 high and a continuation of the rally higher back to the key H1 & H4 supply zone at 1.22724 & 1.22444 and my target is at 1.22400.