GBP/USD: An ABC Pattern on H1 Chart

• GBP/USD has been heading towards the downside with good momentum.
• The pair trades around the SMA 30 closing below with the last H4 candle.
• The H1 chart looks bearish producing an ABC pattern.
• Intraday minor charts have been bearish.

GBP/USD – Technical Analysis- H4 Chart

The chart shows that the price found its resistance at 1.26300 and produced a spinning top followed by a bearish engulfing candle. Since then, it has been heading towards the South. As of writing, the last H4 candle closed below the simple moving average 30. If it comes out as a valid breakout and the SMA 30 produces a bearish reversal signal, then the sellers may look to go short in the pair and drive it towards the South. The price may find its next support around 1.25500.

On the contrary, if the price goes above the SMA 30, then, the buyers may push the price towards the North. In that case, it may find its resistance around 1.26300.

Price Action Analysis- H1 Chart

The chart shows that the price upon finding its resistance made a strong bearish move. It then made a bullish correction but found its resistance at 1.26000. The chart produced an Evening Star right at the resistance. This is an ABC pattern. The C point meaning the level of 1.26000 has been a strong resistance. The chart shows that the price has been heading towards the South with good momentum. The price seems to have found its intraday resistance at the swing low. It is very likely that the price may end up making a breakout here and continue its move towards the South. The price may find its next support around 1.25500.

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

Contact and follow Tareq on Twitter: @tareqfpn