- The pair has been in bullish correction
- Simple Moving Average 30 has been a resistance
- Intraday price action has been bullish
- The price may reverse in New York session
GBP/USD Making a Correction on the H4 Chart
The price after being bearish on the H4 chart has been heading towards the North. The chart shows that the price may find a strong resistance around 1.26500. The confluence of Simple Moving Average 30 and a horizontal flipped level of resistance may make the price bearish. A bearish reversal pattern at that confluence level may make a bearish breakout at the last week’s low. If that happens, the price may find its next support around 1.24350.
On the upside, if the price continues its bullish move and ends up making a bullish breakout at SMA 30, the buyers may keep their eyes on the pair to go long upon having breakout confirmation followed by bullish reversal pattern.
The H1 Chart Obeys a Bullish Trend Line
The chart shows that the price has been gradually heading towards the North by obeying a bullish trend line. At the last bounce, it produced an inside bar and continued its bullish journey by making a breakout at 1.26000. The chart suggests that it may attract the buyers to go long from the value areas. The Bull may find a resistance around 1.26500. A breakout above the level may add more fuel to this bullish move and make it a long one. In case of a bullish breakout at 1.26500, the price may find its next resistance around 1.27000. On the contrary, if the price finds its resistance at 1.26500, the sellers may wait for a bearish reversal pattern followed by a breakout at the bearish trend line to go short in the pair.
The H4 chart favors the Bear as long as that confluence level works as a resistance. Now it depends a lot on today’s intraday charts’ price action. If it continues, the pair may change its trend on the H4 chart as well. However, considering major charts’ influence it seems that the pair may make an opposite route in New York session on intraday charts as well.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn