GBP/USDMarket NewsTechnical Analysis

GBP/USD: Here Goes the Bear

GBP/USD pound
  • GBP/USD made a significant bearish move on the H4 chart.
  • The pair produced a bearish engulfing candle right at the SMA 30’s resistance.
  • The price has breached 1.27000, which may work as a resistance now.
  • The H1 chart looks bearish by obeying a trendline.
  • Intraday minor charts have been bearish in the Tokyo session.
GBP/USD H4 Chart
GBP/USD H4 Chart

GBP/USD – Technical Analysis- H4 Chart

The chart shows that the price after consolidating around the SMA 30 for a while produced a bearish engulfing candle. As of writing, the current candle has been bearish as well. On its way, it breached the level of 1.27000. Sellers may wait for the price to consolidate and produce a bearish reversal signal at the value areas to go short in the pair. The chart shows that it has enough space to offer to the price to travel towards the South. The level of 1.26100 may work as a support.

On the upside, if the price does not continue its bearish move but finds its support, the buyers may wait for the price to breach the SMA 30. The buyers may look to go long upon having breakout confirmation followed by a bullish signal.

GBP/USD H1 Chart
GBP/USD H1 Chart

Price Action Analysis- H1 Chart

The chart shows that the price has been down trending by obeying a trend line. It had multiple rejections at the trend line’s resistance. The H1 traders may only keep an eye to go short from the value areas. The price may find its next support around 1.26100.

For the buyers, it does not look good since it may find some strong flipped horizontal resistances along with the trend line’s resistance. Thus, it would be tough for the buyers to maintain a healthy risk-reward. Written by: Md Tareq Sikder, Senior Analyst Forex Prop NewsContact and follow Tareq on Twitter: @tareqfpn

 

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