GBP/USD H4 Timeframe: The GBP/USD movement on the H4 chart shows price dynamics beginning to enter a corrective phase after prolonged bearish pressure since late October. The overall market structure remains bearish, as the price remains below two key moving averages: the 50-day moving average (MA) (blue) and the 100-day moving average (MA) (red). Both moving averages are still trending downward, indicating that the medium-term bearish momentum has not completely abated, despite attempts to recover in recent days. Currently, the price appears to be attempting to break through the resistance area of 1.3247, but the last candlestick showed significant rejection. This indicates that this zone remains a strong resistance area for sellers. If the price fails to continue its bullish momentum above this area, the potential for a pullback to the nearest support zone at 1.3095 is quite wide open. This level has served as dynamic support over the past few days, resisting bearish pressure and triggering a rebound.
On the other hand, if buyers are able to close the H4 candle strongly above 1.3247 and hold, the chances of continuing the rally towards the next resistance at 1.3370 will increase. The 1.3370 level is crucial because it represents a retest area that previously served as a breakdown point in a downtrend. If the price breaks through this level, the market structure could shift from bearish to neutral-bullish. However, if selling pressure regains dominance and the price pulls back down, the market focus will return to the strong support at 1.3095 and then to the psychological 1.3010 area. A break below 1.3010 has the potential to extend the bearish trend to lower levels and confirm continued seller dominance. Overall, despite signs of an upward correction, the current market remains in a consolidation phase within a downtrend. Buyers need a valid break above the 50-day moving average (MA) and 100-day moving average (MA) to shift sentiment to a more positive level. As long as the price remains below these two moving averages, medium-term bearish pressure remains dominant. Traders are advised to wait for clearer directional confirmation before making any medium-term position decisions.
