GBP/USDMarket NewsTechnical Analysis

GBP/USD: Double Bottom May be Formed; It May Get Bullish

  • GBP/USD trades around a horizontal support.
  • The pair trades below the simple moving average 30.
  • The H1 chart finds a strong horizontal support.
  • Intraday minor charts have been bearish.
GBP/USD H4 Chart
GBP/USD H4 Chart

GBP/USD- Technical Analysis-H4 Chart

The H4 chart shows that the price made a good bearish move upon finding its resistance around 1.22250. It produced consecutive three bearish candles. However, the pair seems to have found its support around 1.21285. The price reacted at this level earlier several times. Thus, the sellers may have to wait for the price to make a bearish breakout at the support followed by breakout confirmation and bearish reversal pattern to go short in the pair. The pair may find its support around 1.20500.

On the upside, if the pair produces a bullish reversal, the buyers may wait for the price to breach 1.22250 to go long in the pair. It would be considered as a neckline breakout of the double bottom, which may generate enough bullish momentum. The price may find its resistance around 1.23200.

GBP/USD H1 Chart
GBP/USD H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price had a strong bounce at 1.21285 earlier. As of writing, the pair trades around that level again. It has produced a bullish inside bar. The current candle has been bullish so far. If the price consolidates and produces a bullish reversal, the buyers may push the price towards the last swing high. The price may find its resistance around 1.22250.

On the downside, if the price breaches 1.21285, the sellers may get into action and drive the price towards the South. The price may find its next support around 1.21000.

The H4 chart looks neutral. However, the H1 chart looks good for the buyers. Thus, the pair may get bullish. If it continues to make a breakout at the H4 double bottom’s neckline, the pair may remain bullish for some days.

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

Contact and follow Tareq on Twitter: @tareqfpn

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