GBP/USDMarket NewsTechnical Analysis

GBP/USD: Bullish Correction May be Extended and Make a New Higher High

GBP/USD UK debt
  • GBP/USD trades around the simple moving average 30 on the H4 chart.
  • The pair consolidated at a horizontal support and made a strong bullish correction.
  • The H1 chart looks bullish approaching at the last swing high.
  • Intraday minor charts have been bullish.
GBP/USD H4 chart
GBP/USD H4 chart

GBP/USD – Technical Analysis- H4 chart

The chart shows that the pair consolidated around the level of 1.25350 for a while and made a bullish move. It found its resistance at the simple moving average 30 and produced a bearish engulfing candle. However, the sellers did not drive the price towards the South further. Rather, upon producing a bullish inside bar, the price has been heading towards the upside again. As of writing, the pair trades around the SMA 30’s resistance. A bullish breakout at the SMA 30 may push the price towards the North. The price may find its next resistance around 1.26200.

On the downside, if the pair produces a bearish reversal pattern, it may head towards the South and find its support again at the last swing low.

GBP/USD H1 chart
GBP/USD H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price has been gradually heading towards the North. Earlier, it had a rejection at 1.25900. The pair may find its resistance again at the level. A breakout above may generate more bullish momentum and push the price towards the level of 1.26500.

On the contrary, if the level produces a bearish reversal pattern, the sellers may go short and drive the price towards the level of 1.25000.

Considering both charts, it seems that the pair may extend its bullish correction. Eventually, it may get bullish if it produces a bullish reversal upon making a breakout at the SMA 30 on the H4 chart.

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

Contact and follow Tareq on Twitter: @tareqfpn

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