GBP/USD: Horizontal Support and Trend Line Resistance are in Play

• GBP/USD has been choppy trading around a massive horizontal support.
• The simple moving average 30 has been working as a resistance.
• The H1 chart looks bullish by having second bounce at a support.
• Intraday minor charts have been choppy.

GBP/USD – Technical Analysis- H4 chart

The chart shows that the price has traded around the level of 1.26000. It is a massive support, where the price reacted several times. On the other hand, the simple moving average 30 has been working as a resistance. Thus, traders are to be patient before making a trading decision. A bearish breakout at the horizontal support may drive the price towards the South. The price may find its support around 1.25250.

On the upside, if the price breaches the SMA 30’s resistance, the pair may head towards the North and make a new higher high. In that case, it may find its next resistance around 1.28550.

Price Action Analysis- H1 Chart

The chart shows that the price has been bearish by obeying a bearish trend line. As of writing, the pair trades around the trend line’s resistance. A bearish reversal signal may attract the sellers to go short in the pair. The price may find its support again around 1.26000. However, if the price makes a bullish breakout at the trend line, the buyers may wait for the chart to produce a bullish reversal pattern to go long in the pair. In that case, the price may find its resistance around 1.26600.

Considering both charts, it seems that the H1 chart may play a vital role to determine its next route. Especially, if it makes a bullish breakout at the trend line, the bull may dominate on the H1, and consequently, it may dominate on the H4 chart as well.

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

Contact and follow Tareq on Twitter: @tareqfpn