- GBP/USD trades within a triangle on the H4 chart.
- The price is about to make a bearish breakout at the up-trending support.
- The H1 chart looks choppy trading around yesterday’s low.
- Intraday minor charts have been bearish.
GBP/USD – Technical Analysis- H4 Chart
The chart shows that the price trades around a horizontal resistance at 1.26400. An up-trending support line is evident. Traders are to keep their eyes on the price action within the triangle. As of writing, the pair trades around the up-trending support level. A bearish breakout may drive the price towards the South. It may find its support at the swing low. On the other hand, if the price breaches the horizontal resistance, the price may continue its bullish move and find its resistance around 1.27500.
The simple moving average 30 has been working as a support. However, the recent price action suggests that the price has not been reacting at the SMA 30 on the H4 chart for a while. Thus, the horizontal resistance and the up-trending support level may play a vital role to determine its next route.
Price Action Analysis- H1 Chart
The chart shows that the price gets caught within a horizontal range. The level of 1.26400 has been working as a resistance. On the other hand, the level of 1.26080 has been working as a support. The buyers will be waiting to get a bullish reversal signal to go long in the pair and push it towards the North.
On the contrary, if the price breaches the support level, the sellers may go short upon having breakout confirmation. The price may find its support around 1.25700.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn