FX.co ★ #Bitcoin chart analysis

The GBPUSD H4 chart shows a clear price action journey from 18 Nov to 6 Dec, wrapped with Bollinger Bands and a volume indicator at the bottom. Here’s a deep technical breakdown based on the indicators visible in the image: Price Movement & Trend The pair moves from a bearish phase (18 Nov–21 Nov) into a strong bullish swing (22 Nov–28 Nov), breaking above the middle Bollinger Band and climbing toward the upper band. After hitting the upper band around 1.3382, the price consolidates in a tight range near 1.3329, forming a potential resistance zone (red horizontal line). The current candle is closing near the middle band, suggesting a pause in the uptrend. Bollinger Bands Analysis 1. *Squeeze & Expansion*: The bands tighten around 20 Nov (squeeze), signalling low volatility and a potential breakout. The subsequent expansion confirms the breakout to the upside. 2. *Band Interaction*: Price respects the upper band as resistance and the middle band as dynamic support. A break below the middle band could shift momentum to bearish. 3. *Width*: The widening bands on the rally indicate rising volatility, typical of strong trends. Volume Interpretation Volume spikes on 27 Nov coincide with the bullish surge, showing strong buying pressure that pushed the price through the upper Bollinger Band. Recent volume has moderated, indicating reduced participation during the consolidation phase. A surge in volume with a break of the 1.3329 resistance would confirm a continuation; low volume with a drop below the middle band warns of weakening momentum. Candlestick Patterns & Levels 1. *Support*: The lower Bollinger Band and the 1.3121 zone acted as support during the dip. 2. *Resistance*: The 1.3382 high and the red horizontal line at 1.3329 are immediate resistance levels. 3. *Pattern*: The move resembles an “impulse‑correction” cycle – a sharp rise followed by a flat consolidation, setting up for either a breakout or retracement. Indicators Summary & Actionable Insights *Trend*: H4 bullish bias remains intact as long as price stays above the middle Bollinger Band (around 1.3250). *Momentum*: The flattening candles near the upper band suggest slowing momentum; watch for a breakout or reversal. *Strategy*: *Long*: Enter on a confirmed break above 1.3382 with rising volume, targeting the next psychological level (1.3400+). *Short*: Consider a short if price drops below the middle band with high volume, targeting the lower band or 1.3200. *Risk Management*: Set stop‑loss just below the middle Bollinger Band for longs or below the recent swing low for shorts. Future Outlook The pair will likely stay volatile around the 1.3329 resistance. A clean break above the upper band could trigger another bullish leg, while failure to hold the middle band may invite a pullback toward 1.3250 or lower. Monitoring volume alongside Bollinger Band interactions will be key to catching.