FX.co ★ FX-Perfact | GBP/USD

GBP/USD Timeframe H4: Based on the GBP/USD H4 timeframe chart, the current technical conditions indicate that the currency pair is in a fairly strong bullish phase. The last price was seen around 1.3506, after previously recovering from the 1.3270–1.3330 area and then forming a series of higher lows and higher highs. This structure indicates that buyers remain in control of price movements in the short to medium term. In addition to reading price action, the price's position relative to the blue 100-day moving average (MA) and the red 200-day moving average (MA) also confirms that the current primary bias is positive. Early in the chart, GBP/USD experienced significant selling pressure and fell to near 1.3139. This decline was then followed by a long consolidation phase around 1.32–1.33. From this area, a change in market character began to emerge as the price gradually formed higher lows and successfully broke through several horizontal resistance levels. The recovery strengthened when the price managed to return above 1.3331. Afterward, bullish momentum developed, sending GBP/USD towards the 1.3433 area, before finally continuing its rise towards 1.3505. This structure indicates a relatively consistent increase in buying interest. From a moving average perspective, the 100-day moving average (MA) is currently positioned around the 1.3400–1.3410 area, while the 200-day moving average (MA) is slightly lower, in the 1.3375–1.3390 range. The price is quite far above both moving averages. This is one of the most important indicators on the chart, as it shows that the medium-term trend is now in buyers' hands. The 100-day moving average (MA) is also seen moving upward, while the 200-day moving average (MA) is beginning to show a positive slope after previously being relatively flat. When the price is above the 100-day and 200-day moving averages, and both lines are trending upward, bullish pressure typically has a stronger technical foundation.

The relationship between the 100-day and 200-day moving averages is also worth noting. The 100-day moving average (MA) has crossed above the 200-day moving average, creating a bullish configuration. This situation indicates that medium-term price momentum is stronger than the long-term moving average. As long as the price doesn't significantly break through these two moving averages again, the 100- and 200-day moving averages can serve as dynamic support. Under current conditions, a correction towards the 100-day moving average could be a crucial test to determine whether buyers still have the strength to maintain the uptrend. In terms of horizontal support and resistance, 1.3505 is a crucial level in the current environment. The price is currently hovering around this area, so the market's reaction to this level will determine the subsequent trend. The 1.3505 area previously served as resistance and is now being retested by buyers. If the H4 candlestick closes convincingly above 1.3505 and the price maintains this level, the chances of a bullish continuation will increase. In a valid breakout scenario, the next resistance target is around 1.3557, the highest horizontal resistance level visible on the chart. The 1.3557 resistance level becomes a key target if GBP/USD manages to break above 1.3505. This area has the potential to become a point of profit-taking due to its proximity to the previous price peak. If the price breaks through 1.3557 with strong momentum, the technically bullish structure will solidify, and the market could potentially enter a phase of forming a new high on the chart. However, if the price fails to break through 1.3557 and forms a rejection candle or bearish reversal on the H4, then a correction towards the support below it would be a scenario worth watching. The first crucial support level is at 1.3433. This level previously acted as resistance and was then broken through as GBP/USD continued its upward movement. Technically, a successfully broken resistance level often transforms into support. Therefore, the 1.3433 area is a zone to watch for a pullback. As long as the price remains above this level, the short-term bullish structure remains relatively healthy. In fact, a decline towards 1.3433 without breaking the higher low structure could be viewed as a normal correction within an uptrend. Interestingly, the 1.3433 area is also located not too far from the 100-day moving average (MA). The combination of horizontal support and moving averages could make this zone quite strong technical support. If GBP/USD corrects from 1.3505 or 1.3557, the price response around 1.3433 and the 100-day moving average (MA) will be important indicators. If buyers re-enter and form a bullish rejection in that area, the price will likely continue its uptrend. Conversely, if the price breaks through 1.3433 and the 100-day moving average (MA) with a strong H4 candle, the short-term bullish momentum will begin to weaken. The next support level is located around 1.3331. This level is quite significant as it previously served as a consolidation zone and price reaction point. A break below 1.3331 would signal that the correction is no longer mild. In such a situation, attention will shift to the 200-day moving average (MA), which is around 1.3380. If the 100-day moving average (MA) is broken but the 200-day moving average (MA) remains stable, the medium-term trend has not yet fully turned bearish. However, if the price falls below the 200-day moving average (MA) and then breaks through 1.3331, the technical structure will become significantly weaker. Below 1.3331 lies support at 1.3267, then 1.3211, and further support at 1.3139. These three levels are crucial in the event of a deeper correction. The 1.3267 area previously served as the basis for consolidation before GBP/USD made a significant rally. Meanwhile, 1.3211 represents support formed by the previous price structure. The 1.3139 level serves as major support on the chart because it is the low point where a bullish reversal begins. As long as the price remains well above these levels, the overall bullish structure remains unaffected. In terms of price action, the current GBP/USD movement is quite constructive. After forming a base around 1.3270, the price gradually rose and then managed to break through 1.3433. Several small corrections that occurred after this rise did not result in significant declines and were instead followed by the formation of new higher highs. This indicates that buyers are still actively exploiting the price decline to accumulate. As long as the higher high and higher low pattern remains intact, the chances of a continuation of the bullish trend are greater than a sudden change in direction. However, traders should still be aware of the possibility of a false breakout in the 1.3505 area. A price that only briefly moves above resistance is not enough to be considered a valid breakout. Better confirmation would be a 4-hour candle closing above 1.3505, followed by the price's ability to maintain that level upon retesting. If this scenario occurs, 1.3505 could transform into new support, opening up room for a move towards 1.3557. Conversely, if the price fails to hold above 1.3505 and falls back below that level, the likelihood of the market consolidating between 1.3433 and 1.3505 increases. Overall, the GBP/USD H4 remains bullish. The price is above the 100- and 200-day moving averages, the 100-day moving average is above the 200-day moving average, and both moving averages are trending upward. The price action structure also shows buyer dominance through the formation of higher highs and higher lows. The main resistance currently being tested is at 1.3505, while the next resistance is at 1.3557. On the downside, 1.3433 serves as the closest support and a key area adjacent to the 100-day moving average, while 1.3331 and the 200-day moving average are the next resistance zones.