GBP/USD: Bear Finds its Ground but a Strong Fence Ahead

• GBP/USD produced a strong bearish candle at a significant level.
• The Simple Moving Average 30 has been working as resistance.
• The H1 chart looks bearish.
• Intraday charts may make some bullish correction.

GBP/USD- Technical Analysis-H4 Chart

The H4 chart shows that the price after being bearish found its support around 1.24550. The price had double bounces at the level. At the second bounce, it made a bullish move and consolidated around the SMA 30. As expected, the price made a good bearish move from that zone. As of writing, the pair trades around the last swing low. The sellers may wait for the price to make a bearish breakout at 1.24550 and drive the price towards the South. The price may find its next support around 1.23350.

On the upside, if the horizontal support level produces a bullish reversal candle, the buyers may wait for the price to make a breakout at the SMA 30 to go long in the pair. The price may find its next resistance around 1.26000.

Price Action Analysis-H1 Chart

The H1 chart shows that the price made a bearish move upon finding its resistance around 1.25500. On its way, it made a significant bearish breakout at 1.25000. Since it is a round number, the sellers are going to wait for the price to make a bullish correction and produce a bearish reversal pattern at that level to offer them short entries. The price may find its first support around 1.24600. A breakout below that level may generate more bearish momentum and take the price towards 1.23700.

On the upside, a bullish breakout at 1.25000 may change the scenario. The pair might get bullish in case of a bullish breakout. Most probably, it will get sluggish within 1.25000-1.25500.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn