FX.co ★ GBP/USD

GBP/USD H4 Analysis: Buyers Defend Early Weakness as Market Awaits Breakout Confirmation Market Overview GBP/USD started the new trading week with selling pressure, opening lower than Friday’s close. However, buyers reacted quickly and erased the opening gap, showing that bullish interest remains present in the market. The next phase of price action will depend on whether buyers can secure a move above key resistance or sellers regain control below important support levels. Technical Analysis On the H4 timeframe, the pair is trading around the middle area of the volatility bands, indicating that the market has not yet chosen a clear direction. Traders may need to wait for a stronger test of either the upper or lower band before confirming the next trend. Recent upward and downward fractals have created important reference points for future price movement. A successful breakout above the nearest bullish fractal could open the way for a move toward the higher fractal level formed on June 18. On the other hand, a break below the nearest bearish fractal may increase the chances of a deeper decline toward the lower historical fractal target. The Awesome Oscillator remains in negative territory but continues to lose bearish momentum. If the indicator moves closer to the zero line over the next few sessions, bullish signals will become stronger. A renewed increase in negative momentum would favor sellers. Key Levels Support: 1.31911, 1.31617, 1.31590 Resistance: 1.32400, 1.32528, 1.33243 Buy Targets: 1.32528, 1.33243 Sell Targets: 1.31617, 1.31590, 1.31242 Trading Outlook The market remains at an important decision point, with both bullish and bearish scenarios still possible. A confirmed break above resistance would strengthen the case for further gains, while a move below support could trigger additional downside pressure. Traders should wait for a confirmed breakout before committing to a directional bias.