GBP/USD: Confluence Level is in Play, Keep an Eye on the Price Action

• GBP/USD is having consolidation around the SMA 30 on the H4 chart.
• A horizontal level of support has been holding the price.
• The H1 chart looks bearish making a bullish correction.
• Intraday minor charts have been bullish.

GBP/USD – Technical Analysis- H4 chart

The chart shows that the price has been on a bearish correction on the H4 chart. As of writing, the pair trades around the simple moving average 30’s support. The buyers are going to wait for the chart to produce a bullish reversal pattern to go long from here. A bullish reversal pattern may push the price towards the last swing high. 1.28000.

On the contrary, if the price breaches the SMA 30, the sellers are going to wait for a breakout confirmation followed by a bearish signal to go short in the pair. The price may find its next support around 1.25000.

It is important to note that a horizontal support has been playing its part at 1.26450 as well. Thus, the pair actually trades at a confluence level. Either way, a bullish reversal or a bearish breakout may create good momentum.

Price Action Analysis- H1 Chart

The chart shows that the price has been having a bullish correction after being bearish. The level of 1.26650 may work as a flipped resistance. The sellers may wait for the chart to produce a bearish signal to go short from here. The price may find its next support around 1.26000.

On the contrary, if the price makes a bullish breakout, the buyers will look for their long opportunities. In that case, it may find its resistance around 1.27400.  

Considering both charts, it seems that the pair is in a position to make a big decision here. Thus, traders are to keep their eyes on the pair to find its next trend.

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

Contact and follow Tareq on Twitter: @tareqfpn