- GBP/USD is in consolidation after being bullish on the H4 chart.
- The simple moving average 30 has been its support.
- The H1 chart has been obeying a bullish trend line.
- Intraday minor charts have been choppy in Tokyo session.
GBP/USD – Technical Analysis- H4 chart
The chart shows that the price has been heading towards the North with good momentum. The simple moving average 30 has been its support. At the last bounce, it produced a bullish inside bar and made a bullish move. It found its resistance around 1.25580 and made a bearish correction. Upon finding its support, it continued its bullish journey again by making a breakout at the horizontal resistance. As of writing, the pair is traded well above the breakout level. The buyers may wait for the chart to produce a bullish reversal pattern at the flipped support to go long again in the pair.
A breakout above the consolidation resistance at 1.26400 may push the price towards the North as well. In that case, the pair may find its resistance around 1.27000.
Price Action Analysis- H1 Chart
The chart shows that the price has been obeying a bullish trend line. At the last bounce, it produced a bullish engulfing candle. However, it has found its resistance at the last swing high at 1.26400. A price breach at the trend line may attract the sellers to go short in the pair upon having bearish reversal pattern at the value areas. The price may find its next support around 1.25900.
On the contrary, a bullish reversal signal at the trend line’s support may push the price towards the North again. The pair may end up making a new higher high in that case finding its next resistance around 1.27000.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn