- 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