FX.co ★ Khurram78 | GBP/USD

On the h4 chart, the GBP/USD currency pair is currently exhibiting interesting market dynamics, with seller dominance appearing very solid after failing to maintain momentum at high levels. This analysis examines how the price moved from strong resistance to a potential test of lower support levels. The initial bearish sentiment we are currently witnessing stems from massive selling pressure at 1.38500. This level is not just a random number; historically, 1.38500 has served as a defensive stronghold for bears . The prices failure to break above this level indicates that the pounds purchasing power is losing steam against a potentially fundamentally stronger US dollar. A sharp rejection from this area forms a reversal pattern, triggering a chain of sell-offs. Currently, the market focus is on the 1.35300 level. Technically, this area represents Resistance Become Support (RBS). The prices resistance at this level indicates buyers are attempting to resist and seek a foothold for a rebound .

If we look at the structure of recent highs and lows , it tends to continue forming lower highs . If the price fails to bounce significantly off 1.3542, this level will lose its validity as support and will shift back to being a new resistance level , pushing the price down further. In the Daily time window using the Moving Average technique, it appears that the GBPUSD pair market is still being maintained by sellers who are able to dominate trading by continuing to control the market after entering with a larger and stronger amount than buyers by pushing the GBPUSD pair price back down bearishly by approaching the 50 Red MA area at 1.3462 supported by the dominance of solid bearish candlesticks indicating that the GBPUSD pair market is currently continuing to weaken in todays trading. If sellers are able to maintain their dominance, the red 50-day moving average (MA) could be breached, opening up a deeper bearish trend, with the next target being the yellow 200-day moving average (MA) at 1.3421. Caution should be exercised if sellers are unable to push prices below the red 50-day moving average (MA), as this could potentially lead to a re-takeover by buyers, leading to further bullish price increases.