- GBP/USD made a notable bullish breakout on the H4 chart.
- The pair is having consolidation around the SMA 30’s support.
- The H1 chart is having bearish correction may get bullish later.
- Intraday minor charts have been choppy.
GBP/USD- Technical Analysis-H4 Chart
The H4 chart shows that the price has produced a double bottom with bullish divergence. It made a breakout at the neckline as well as at the simple moving average 30. The price had a bearish correction. It seems to have found its support at the SMA 30’s support. The broken horizontal level has been working as a support as well. Thus, the buyers may be very interested to go long in the pair from the value areas. The chart shows that it has enough space towards the North to travel. It may find its next resistance around 1.22700.
Price Action Analysis- H1 Chart
The chart shows that the price after being bullish on the H1 chart found its resistance around 1.21700 and made a long bearish correction. The price has found its support at 1.21380. Upon producing a bullish engulfing candle, the pair has been up trending with a decent momentum. The buyers may keep their eyes on the pair to look for long opportunities. The price may find its next resistance around 1.21700. A bullish breakout at that level may push the price towards the North with good bullish momentum. In that case, the pair may find its resistance around 1.22150.
For the sellers, if the price breaches the support and confirms the breakout, they may find some short entries. However, the level of 1.21000 may hold the price as a support. It means the pair may not make a long bearish move based on the H1 chart.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn