FX.co ★ GBP/USD

GBP/USD H4 Timeframe: GBP/USDs movement on the H4 timeframe shows a bearish bias that has remained quite dominant in recent weeks, as indicated by the 100-day moving average (blue) and 200-day moving average (red), both of which are above the price. Both moving averages are also moving downward with a consistent slope, indicating that the medium- to long-term trend structure remains under seller control. However, there are early signs that the price is beginning to form a consolidation or correction phase after reaching a key support area. A strong support level seen on the chart is the 1.3010 area, which previously served as a significant rebound point in early November. The rebound from this zone generated a short-term bullish reaction, pushing the price back to the 1.3083 area, which currently acts as minor resistance. A small breakout towards 1.3105 indicates an attempt by buyers to push back, but the movement remains restrained by dynamic pressure from the 100-day moving average. Looking at the price action over the past few days, the lows formed tend to flatten, indicating that the bearish momentum is slowly weakening. However, to confirm a potential trend reversal, the price needs to break through strong resistance around 1.3247, a horizontal boundary that meets the 200-day moving average (MA). As long as the price remains below this area, the medium-term outlook remains bearish, despite a small rebound.

If the price successfully breaks through the 100-day moving average (MA) and moves steadily above 1.3140–1.3170, the opportunity to move towards the 1.3247 resistance level will be wider. A breakout from this zone will provide a positive signal for buyers, with further targets pointing to 1.3270 and even 1.3471 as major resistance. Conversely, failure to break through 1.3083–1.3105 could trigger renewed selling pressure, sending the price back to test the critical support area of 1.3010. If this support is broken with a strong H4 candle, the bearish trend will likely continue towards the psychological area of 1.2950 or even lower. Under current conditions, GBP/USD is in a deciding phase between continuing the bearish trend or forming a short-term bullish structure. Traders are advised to wait for clear confirmation, especially at the moving average (MA) and key horizontal levels, before making any decisions.