FX.co ★ GBP/USD

GBP/USD H4 Timeframe On the H4 timeframe, the GBP/USD currency pair is still in a fairly consistent downtrend. This is evident in the price structure, which has consistently formed lower highs and lower lows from late October to mid-November. This dominant bearish pressure is also reinforced by the position of the Moving Averages, particularly the 100-day moving average (MA100) (blue line) and the 200-day moving average (MA200) (red line), which are both moving downwards and forming a bearish alignment —with the 100-day moving average (MA100) below the 200-day moving average (MA200). This condition signals that the medium-term trend is still more downward. The price is currently consolidating in a minor support area around 1.3083, which has been a price reaction point several times in recent sessions. The price movement held above this level indicates short-term buying interest, but it is not yet strong enough to change the overall trend direction. On the downside, the next support area lies at 1.3010, which is a crucial zone as it served as the lower limit of the major decline in early November. If the price weakens again and breaks through the 1.3083 level, then the opportunity to move towards 1.3010 is quite wide open.

Meanwhile, for a potential reversal, the price needs to be able to break out and hold above the dynamic resistance of the 100-day moving average (MA). However, the chart shows that every time the price approaches the 100-day moving average (MA), selling pressure reappears and holds the upside. The nearest horizontal resistance is located at 1.3247, which is also close to the 200-day moving average (MA). This level is key for buyers—if the price is able to break through and hold above it, the technical structure indicates a potential medium-term trend change. Overall, market sentiment remains bearish as long as the price moves below both moving averages and fails to break through the key resistance levels. Under these conditions, the most logical opportunity is to wait for a price reaction at the 1.3083 and 1.3010 support areas to determine whether the decline continues or a technical rebound occurs. Meanwhile, a new bullish scenario would be more valid if the price breaks through 1.3247 and surpasses the 200-day moving average (MA) with strong volume. Thus, the primary focus for technical traders is currently observing whether the lower low structure remains intact or begins to weaken. Until then, bearish pressure remains dominant, and further downside is still highly likely.