GBPUSD Potential For Bearish Continuation | 1st July 2022

On the H4, with prices reversing off the ichimoku resistance, we have a bearish bias that price will drop from our 1st resistance at 1.21657 where the horizontal overlap resistance and 38.2% fibonacci retracement are to our 1st support at 1.19313 where the horizontal swing low support and 61.8% fibonacci projection are. Alternatively, price could rise above 1st resistance structure and head to 2nd resistance at 1.24327 in line with the 61.8% fibonacci projection, 78.6% fibonacci retracement and pullback resistance.

Trading Recommendation

Entry: 1.21657

Reason for Entry:

Horizontal overlap resistance and 38.2% fibonacci retracement

Take Profit: 1.19313

Reason for Take Profit:Horizontal swing low support and 61.8% fibonacci projection

Stop Loss: 1.24327

Reason for Stop Loss:

61.8% fibonacci projection, 78.6% fibonacci retracement and pullback resistance