- GBP/USD has been bullish by obeying a trend line on the H4 chart.
- The simple moving average 30 has been working as a support.
- The H1 chart has been on correction; may get bullish again.
- Intraday minor charts have been choppy.
GBP/USD – Technical Analysis- H4 chart
The chart shows that the pair has been up trending by obeying a trend line. At the last bounce, it produced a Pin bar and headed towards the upside in a hurry. On its way, it made a breakout at horizontal resistance at 1.25000. Without any doubt, it is a very significant level, where traders make their trading decision based on the price action around this level. Since the H4 chart looks bullish, the buyers may keep looking to go long in the pair. The price may find its next resistance around 1.26000.
On the contrary, if the price breaches the trend line and goes below 1.25000, it may get bearish. In that case, the pair may head towards to the level of 1.23800.
Price Action Analysis- H1 Chart
The chart shows that the price has been up trending by obeying another trend line. At the last bounce, the price consolidated at the trend line’s support and made a move. On that move, it breached 1.25000. However, it had a rejection around 1.25100. Thus, the buyers may keep their eyes at the zone of 1.25000-1.25100 to go long in the pair. The price may find its resistance around 1.25600.
On the contrary, if the price breaches the trend line along with the horizontal support at 1.25000, the bear may take over. In that case, the sellers may get some excellent short opportunities.
Considering both charts, it seems that the pair is well poised to offer entries to both. The level of 1.25000 and those two trend lines hold the key. Traders are to be very watchful here.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn