GBP/USD Beautiful Buy Setup

All major currencies were correcting to the downside as people were thinking that higher inflation in the U.S. will push the Fed to higher interest rates. However, GBP/USD is showing a start of a new bullish cycle for major currencies which indicates the probability of USD pairs to start their bearish cycles soon.

As you can see, GBP/USD went 4 waves up. The price is currently trading inside a descending channel or a bullish flag which are both considered continuation patterns for more upside. Additionally, we can spot a falling wedge formation inside the bigger descending which indicates an amazing entry point with a very tight stop-loss for a very rewarding target.

Our targets for this trade will be 1.3945, 1.3980, and the 70.2% Fibonacci Extension level at 1.4079. Good luck!