- GBP/USD has been on a bearish correction on the H4 chart.
- The SMA 30 has been working as a resistance.
- The H1 chart looks bullish trading around the swing high.
- Intraday minor charts have been choppy.
GBP/USD – Technical Analysis- H4 Chart
The chart shows that the price after breaching the simple moving average 30 made a bearish correction and produced a bearish engulfing candle. The price continued its bearish move with one more candle. However, it produced a bullish engulfing candle closing right at the SMA 30’s resistance. The chart produced a spinning top. Thus, the sellers may keep their eyes on the pair to get a bearish reversal candle to go short in the pair. The price may find its next resistance around 1.26000.
However, if the price breaches the SMA 30 and goes above it, the buyers may take over and push the price towards the North. In that case, the price may find its resistance around 1.27550.
Price Action Analysis- H1 Chart
The chart shows that the pair trades around the level of 1.27180 for a while. It had a strong rejection at the level earlier. It produced a bearish engulfing candle this time followed by a doji candle. So far, the price has been bearish. The sellers may keep their eyes on the pair to go short and drive the price towards the level of 1.26600.
On the contrary, if the price breaches the level, the buyers may push the price towards the level of 1.27400.
Considering both charts, it seems that the bear may come into play and make a move soon. The SMA 30 has been working as resistance. A bearish reversal candle may offer entries with excellent risk-reward here.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn