- GBP/USD is on a strong bearish correction on the H4 chart.
- The pair trades above the SMA 30, but it may get broken.
- The H1 chart looks bearish.
- Intraday minor charts have been bearish.
GBP/USD- Technical Analysis-H4 Chart
The H4 chart shows that the pair made a bullish move upon producing a double bottom. It found its resistance around 1.22880 and made an abrupt bearish move. As of writing, the pair has been bearish as well. It suggests that the price may find its next support around the simple moving average 30’s support. The way it has been heading towards the South, it may end up making a bearish breakout at the SMA 30. If that happens, the pair may get bearish and find its support at the last swing low.
On the other hand, the buyers may wait for the price to be held by the SMA 30. If it works as a support and produces a bullish reversal pattern, the buyers may go long in the pair and push the price towards the North. The price may find its resistance around 1.22880 again.
Price Action Analysis- H1 Chart
The chart shows that the price upon finding its resistance around 1.22880 produced a bearish engulfing candle. It then produced a hammer. Since then it has been heading towards the South with extreme bearish momentum. The chart also shows that the price has breached a bullish trend line. The breakout is not yet confirmed by the H1 chart. However, as things have been going in the pair, it seems that the chart may end up making a bearish breakout at the trend line. If that happens, the sellers will be keen to go short in the pair and drive the price towards the downside. The price may find its support around 1.21400. A breakout below that level may drive the price towards the last swing low.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn