GBP/USDMarket NewsTechnical Analysis

GBP/USD: Finding a Resistance But Bull is Ahead

GBP/USD pound
  • GBP/USD has been bullish on the H4 chart.
  • The pair has found its support at 1.26000.
  • The H1 chart has been bullish heading towards yesterday’s high.
  • Intraday price action has been bullish.
GBP/USD H4 Chart
GBP/USD H4 Chart

GBP/USD – Technical Analysis- H4 Chart

The chart shows that the price has had a bounce at 1.26000. Upon producing a bullish engulfing candle, the price has been gradually heading towards the North. As of writing, the chart produced another bullish candle, so the buyers may keep their eyes on the pair to go long and push the price towards the North. It may find its next resistance around 1.27800.

On the contrary, the sellers may have to wait for the price to produce a strong bearish reversal pattern or produce a bearish move breaching the SMA 30 to go short in the pair. The price may find its support around 1.26000 again.

GBP/USD H1 Chart
GBP/USD H1 Chart

Price Action Analysis- H1 Chart

The chart shows that it has produced a Flag Pattern. The pair trades within a channel. Upon having a rejection at the channel’s resistance, the pair made a move towards the South. However, it has found its horizontal support at 1.27000. Since then, it has been heading towards the North again. It may continue its move towards the upside and find its resistance at the channel’s upper line. A breakout above the channel’s resistance may create good bullish momentum and push the price towards 1.27800.

On the downside, if the channel’s resistance produces a bearish reversal pattern, the sellers may take over and drive the price towards the support.

Considering both charts, it seems that the bull has an advantage. However, it may find its resistance soon. Buyers on the H4 and H1 chart will be eagerly waiting for a breakout. If that happens, the bull may dominate in the pair for some days.

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

Contact and follow Tareq on Twitter: @tareqfpn

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