FX.co ★ dusty24 | GBP/USD

GBP/USD. The pound on the H4 chart is currently experiencing a classic structure breakdown. For a long time, the pair steadily climbed up inside an ascending corridor, relying on the white trend line. However, the current four-hour candle has broken this idyll, breaking through the support from top to bottom. Sellers have clearly taken the initiative after the price failed to hold above the local resistance at 1.36258. In fact, we have seen a bounce off the upper boundary of the global descending channel (the D1 Res line at the very top). The bearish impulse is strong, with quotes already dropping below the middle Bollinger Band and settling at 1.35826. Only sales are now a priority. The target should be the area of the blue horizontal support H4 Sup, located at the level of 1.35123. Buying in the current situation is an unwarranted risk. The optimal plan is to wait for a local pullback back to the broken white line on the hourly timeframe and enter a short position with a tight stop. Let's see if the current candle closes below the trend line.