FX.co ★ Alpha302 | GBP/USD

GBP/USD Technical analysis H-4 Chart

Good morning. Based on your analysis, here's a summary of the current GBP/USD outlook and trading recommendations: Overall Sentiment: Sellers were active yesterday on the Pound, establishing a downward movement. The immediate target for this fall is 1.33697. Downward Movement Scenarios: * Breakout and Consolidation below 1.33697: A successful break and active consolidation below this level would signal a significant shift in the ascending structure and suggest a potential continuation of the fall. * Further Target: If 1.33697 is broken and consolidated below, the next target for the downward movement is 1.32496. Upward Movement Scenarios: * Buyers would need to form a reversal model on younger timeframes to plan purchases. GBP/USD M5 Chart Analysis (5-minute timeframe): * Lower Band Interaction: The Pound is attempting to move towards the lower Bollinger Band. For a strong sell signal, observe for an active touch of the lower band and assess if the bands widen outwards or show no reaction. * AO Indicator (Awesome Oscillator): The AO indicator is currently growing in the negative area. For a better sell signal, wait for active acceleration of the AO. A stronger buy signal would involve a transition through zero and active growth in the positive zone. * Entry Point for Sales: A potential entry point for sales is located at 1.34188. A price drop during a breakout and consolidation could target 1.33968. * Entry Point for Purchases: Purchases in current conditions can be considered from 1.34395. A price increase during a breakout and consolidation could target 1.3454. Important Considerations (from recent market analysis): * The GBP/USD has been experiencing declines recently, with analysts noting it has breached several important short-term support levels (e.g., 1.3630 and 1.3530–1.3550). These levels now act as near-term resistance. * Key economic data releases this week, particularly the US and UK CPI reports, could significantly influence the GBP/USD pair. Traders should remain nimble around these releases. * The overall sentiment from some analysts points to potential for further dollar strength amid inflation fears and US fiscal plans, which could weigh on GBP/USD. This analysis provides a clear roadmap for potential movements and trading opportunities based on your provided information. Remember to manage your risk carefully and consider the broader market context.