- GBP/USD has been bearish on the H4 Chart.
- The pair consolidates around a horizontal resistance.
- The H1 chart may make a bullish correction.
- Intraday price action has been bearish.
GBP/USD- Technical Analysis-H4 Chart
The pair has been bearish on the H4 chart. It shows that it has been heading towards the South with good bearish momentum. Simple Moving Average 30 has been its resistance. At the last consolidation, it produced a bearish engulfing candle and moved towards the downside in a hurry. As of writing, the price consolidates around flipped resistance at 1.24000. A bearish reversal candle followed by a breakout below 1.23690 may attract the sellers to go short in the pair. The price may find its next support around 1.23000.
On the contrary, if the price breaches 1.24000, it may get sluggish and trades within the resistance of the SMA 30. The sellers may keep their eyes on the pair to go long in case of a bullish breakout at the SMA 30. In that case, the price may find its resistance around 1.25000.
Price Action Analysis- H1 Chart
The chart shows that the price after being bearish for a period, it has been on consolidation around horizontal support at 1.23750. A bearish breakout at the support may attract the sellers to go short and drive the price towards 1.22600. However, the buyers may wait for the price to produce a bullish reversal pattern at the support zone to go long above 1.24060. The price may find its next resistance around 1.24400.
The H4 chart looks bearish. The H1 chart could go either way. Considering both charts, the bear is slightly ahead than the bull. Nevertheless, the bull may emerge and show its strength in the pair. Let us closely watch the price action before making any trading decision in this pair.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn