- GBP/USD has been on a strong bearish trend on the H4 chart.
- The pair is having consolidation, so the sellers will be keen to go short.
- The H1 chart is having a bullish correction.
- Intraday minor charts have been choppy.
GBP/USD – Technical Analysis- H4 Chart
The chart shows that the price has been bearish by producing a bearish engulfing candle at a key resistance zone. It breached the simple moving average 30’s support and headed towards the downside with good momentum. As of writing, the pair is having consolidation again. The sellers may keep their eyes on the pair to go short and drive the price towards the South. The price may find its next support around 1.23750.
On the upside, the buyers may not find long opportunities based on this chart. The pair needs time to get bullish as the SMA 30 is way behind from where it trades now.
Price Action Analysis- H1 Chart
The chart shows that the price after being very bearish found its support at 1.25150. It produced a bullish inside bar right at the support. Since then, it has been heading towards the upside with a moderate pace. The level of 1.25500 has been working as a resistance. The sellers will be eyeing at this level to get a bearish reversal signal to go short in the pair. The price may find its next support around 1.24500.
However, if the price breaches the level, the buyers may wait for the price to confirm the breakout followed by a bullish reversal candle at the value areas to go long in the pair. The price may find its resistance around 1.26000.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn