FX.co ★ vadlamudi | GBP/USD

GBPUSD 4H: Bearish Breakdown

GBPUSD is showing a bearish setup on the 4H timeframe. Price has broken below the previous rising structure and is now trading under the marked resistance zone. The preferred setup is to wait for a pullback into the resistance zone and look for a rejection before entering a short position. Setup: Sell on pullback and rejection Invalidation: 1.340 Short-Term Target: 1.318 Mid-Term Target: 1.302 As long as price remains below 1.340, the bearish idea remains valid. The key level now is the Resistance Zone (Pullback). I would rather wait for a clean rejection from this area than chase the current move lower. If GBPUSD breaks and holds above 1.340, the bearish setup is invalidated. Scenario: Breakdown → Pullback → Rejection → 1.318 → 1.302