GBPUSD- Short into a long trade.

GBPUSD:

We have seen the DXY fly to its weekly highs over the past few months. In my opinion we will start seeing resistance play out on the DXY; which indicates we will see a bearish dollar; implying GU will turn bullish.

As you can see on the chart, I have labelled the blue boxes (4hr areas). From my analysis I can see GU falling towards 1.24500. From that point I will be looking for long positions back up.

Reasoning for bullish movement:
The daily has closed as a bullish engulfing, moreover has rejected the weekly 61.8% fib level. On the 1 hour timeframe we have also broken market structure; plus the DXY looks bearish.

If we get the short move back towards 1.24500, price action would have formed an inverse head and shoulder formation; which is an additional bullish confluence.

Hope everyone has a great weekend, remember NFP (non farm payroll) is this friday, so markets may be very unpredictable.

Thanks.