- GBP/USD has found its horizontal resistance at 1.27400.
- The pair trades above the SMA 30 as of writing.
- The H1 chart looks bearish having consolidation at the moment.
- Intraday minor charts have been bearish.
GBP/USD – Technical Analysis- H4 chart
The chart shows that the price has found its support at 1.26300. It produced a bullish engulfing candle and headed towards the North by breaching the simple moving average 30. As of writing, the pair upon having a rejection at 1.27400 is trading around the SMA 30’s support. The buyers may wait for the chart to produce a bullish reversal pattern to go long in the pair. The price may find its resistance around 1.28000 again. However, a breakout above the level may generate more bullish momentum and push it towards the upside. In that case, it may find its resistance around 1.29500.
On the downside, if the price breaches the SMA 30, the sellers may wait for the chart to produce a bearish reversal pattern to go short in the pair. The price may find its support around 1.25000.
Price Action Analysis- H1 Chart
The chart shows that the price upon having consolidation around 1.27400 has made a bearish correction. As of writing, the pair seems to have found its support at a flipped level 1.27000. A bullish reversal pattern may push the price towards the North. Considering the fact that the level of 1.27400 being a strong resistance, the buyers may consider taking profit at the level. Thus, traders are to be watchful on the price action before making their trading decision based on this chart.
A bullish breakout may push the price towards the level of 1.27500. On the downside, if the chart produces a bearish reversal pattern at 1.27400, the sellers may drive the price towards the South. A breach below 1.27000 may make the price go down to 1.26500.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn