GBP/USDMarket NewsTechnical Analysis

GBP/USD: Keep an Eye on a Horizontal Support on the H4 Chart

GBP/USD BoE Inflation Warning
  • GBP/USD has been bearish approaching a significant horizontal support.
  • The pair trades around the SMA 30 and may make it a resistance.
  • The H1 chart looks to find its direction.
  • Intrday 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 upon finding its horizontal resistance made a bearish move. On its way, it breached the simple moving average 30. However, the level of 1.27000 held the price as a support and pushed it towards the North. The price has found its resistance at 1.27600. Since then, it has been heading towards the South again. The level of 1.27000 may play a vital role to determine its next route.

If the level holds the price as produces a bullish reversal pattern, the buyers may go long and push the price towards the North. The price may find its resistance around 1.28000.

On the other hand, if the level gets breached, the sellers may drive the price towards the South further. In that case, it may find its support around 1.26300.

GBP/USD H1 chart
GBP/USD H1 chart

Price Action Analysis- H1 Chart

The chart shows that the price has reacted at the level of 1.27000 several times. At the last bounce, it produced a double bottom and made a bullish move. As of writing, the price has been heading towards the level of support again. Thus, traders are to be very watchful on the price action around this level. A bearish breakout may generate more bearish momentum and take the price towards the level of 1.26500.

On the contrary, if the level works as a support again and produces a bullish reversal pattern, the buyers may push the price towards the North. The price may find its resistance around 1.27800.

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

Contact and follow Tareq on Twitter: @tareqfpn

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