GBP/USD: Bear Holds the Key; Bull Looks for Opportunity

• GBP/USD trades below the simple moving average 30 on the H4 chart.
• The pair may make a bullish correction.
• The H1 chart is still to find its direction.
• Intraday price action suggest it may get choppy.

GBP/USD- Technical Analysis-H4 Chart

The chart shows that the price made a strong bullish move despite making a bullish breakout at the SMA30. It found its support around 1.20500 and consolidated for a while. As of writing, the price seems to be making a bullish correction. The sellers may wait for the price to find its resistance and produce a bearish reversal pattern to go short in the pair. The level of 1.21250 may work as a flipped level of resistance and drive the price towards the South.

On the upside, traders should wait for the price to make a bullish breakout followed by a strong bullish reversal pattern at the support zone. In case of a bullish move, the price may find its resistance around 1.22600.

Price Action Analysis- H1 Chart

The chart shows that the price has been heading towards the South by obeying a bearish trend line. As of writing, the price seems to have found its resistance around 1.21000, where it had a rejection earlier. If the H1 chart produces a bearish reversal candle, the sellers may wait for the price to make a breakout at the last swing low to go short and drive the price towards the South. However, if the last swing low holds the price and produces a bullish reversal candle, then the buyers may find some long opportunities. Traders must consider the trendline’s resistance before taking any buying decisions. The H4 chart is bearish. However, the H1 chart is yet to find its direction. Let us wait and see which direction it goes to. Overall, the bear seems to be ahead of the bull here.

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

Contact and follow Tareq on Twitter: @tareqfpn