- GBP/USD has been having a bearish correction on the H4 chart.
- The buyers may keep their eyes at a level to get a bullish reversal pattern.
- The H1 chart looks bearish.
- Intraday minor charts have been bearish.
GBP/USD- Technical Analysis-H4 Chart
The chart shows that the price had a rejection around 1.24250 and produced a bearish hammer. Since then it has been heading towards the downside in a hurry. The chart also shows that the level of 1.22600 may work as a flipped level of support. The price reacted at this level. Thus, the buyers may wait for the level to hold the price as a level of support and produce a bullish reversal pattern to go long in the pair. The price may find its resistance around 1.25000.
On the contrary, if the price breaches the level, the sellers may wait for a bearish reversal pattern at the breakout level to go short in the pair. In that case, it may find its support around 1.21850.
Price Action Analysis- H1 Chart
The chart shows that the price has been heading towards the downside with decent momentum. It has enough open space to travel towards the South. However, As the H4 chart shows that it may find its support around 1.22600, thus the sellers may take a pause down there. A bearish breakout at that level may attract them to go short again in the pair and drive the price towards the South. The price may find its support around 1.22250.
On the other hand, if the price finds its support and produces a bullish reversal pattern at the value areas, the buyers may go long and push the price towards the upside. The price in that case may find its resistance again at the last swing high.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn