FX.co ★ GBP/USD

GBP/USD H4 Timeframe: Based on the GBP/USD chart on the H4 timeframe, the current price movement is showing a consolidation phase after previously experiencing a fairly strong upward impulse. The price peaked in the 1.3830–1.3870 area before undergoing a gradual correction and is now moving relatively flat around 1.3600. This structure indicates a weakening of short-term bullish momentum, although the intermediate trend still maintains a positive trend. Referring to the 100 Moving Average (MA 100) and 200 Moving Average (MA 200), the 100 MA (blue line) is still above the 200 MA (red line). This configuration generally reflects a bullish intermediate trend as there has been no death cross, or downward crossover, between the two MAs. However, the slope of the 100 MA is starting to flatten, and the price is currently moving very close to, or even slightly touching, the 100 MA. This condition indicates that buying pressure is starting to diminish and the market is entering a balancing phase between buyers and sellers. In terms of price structure, the 1.3660–1.3730 area appears to be a key resistance area. This area has repeatedly been a point of price rejection after corrections from the highest peak. As long as the price is unable to break through and hold above this zone, the potential for further upside remains limited. Meanwhile, the nearest support is around 1.3480, which previously served as an accumulation area before a significant surge. The next support is seen in the 1.3400–1.3310 range, which was the basis of the previous movement and an area of strong demand.

The current price movement around 1.3600 also shows a short-term sideways pattern with a relatively narrow range. This often marks a distribution or accumulation phase before the next impulsive movement. If the price is able to stay above the 100-day moving average and re-breaks 1.3660 with increasing volume and momentum, there is a chance for a retest to 1.3730 or even 1.3830. In this scenario, the higher low structure remains intact, and the uptrend has the potential to continue. Conversely, if the price fails to maintain the 1.3600 area and consistently breaks below the 100-day moving average (MA), selling pressure could increase, with an initial target of 1.3480. A break below this area would increase the likelihood of the price testing the 200-day moving average (MA), currently around 1.3550–1.3500, and even open up room for a deeper correction toward 1.3400. If the 100-day moving average (MA) begins to cross below the 200-day moving average (MA), the signal for an intermediate trend reversal would become stronger. Overall, GBP/USD is currently in a direction-determining phase on the H4 timeframe after a significant rally. The intermediate trend remains bullish as long as the 100-day moving average (MA) remains above the 200-day moving average (MA), but short-term momentum is weakening and the market is consolidating. A breakout from the 1.3480–1.3730 range will be key to determining the next direction. Traders should monitor price reactions around the 100-day moving average (MA) and key support and resistance levels for valid confirmation before making a position decision.