- GBP/USD has been heading towards the downside with good momentum.
- Simple Moving Average 30 has been its resistance.
- The H1 chart has been obeying a bearish trend line.
- Intraday price action has been choppy for a while.
GBP/USD- Technical Analysis- H4 Chart
The chart shows that the price has been heading towards the South in a hurry. It had several rejections at the SMA 30. At the last rejection, it produced a bearish engulfing candle and headed towards the downside with extreme bearish momentum. The sellers may keep their eyes on the pair to go short from the value areas.
Conservative sellers may want to wait for the price to make a bullish correction and produce a bearish reversal candle again at the SMA 30.
On the contrary, the buyers may not take any trading decision based on the H4 chart. Until, the pair produces a double bottom or a make a strong bullish move goes above the SMA 30, the buyers may not find long opportunities with lucrative risk-reward.
Price Action Analysis-H1 Chart
The chart shows that the price has been heading towards the South by obeying a bearish trend line. It had its second rejection and made a new lower low. As of writing, the pair trades around the resistance of that trend line. Thus, the sellers may wait for the chart to produce a bearish reversal pattern to go short in the pair. The price may find its next support around 1.21325.
The H1 chart looks to be having potential for the buyers as well. If the price makes a bullish breakout at the trend line’s resistance, the buyers may wait for the price to confirm the breakout followed by a bullish reversal candle to go long in the pair. The price may find its resistance around 1.23000.
The H4 chart looks very bearish. The H1 chart could go either way, but the bear has an edge. Thus, the pair may be dominated by the sellers on the H4 and H1 chart.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn