FX.co ★ GBP/USD

GBP/USD Technical Analysis (H1 Timeframe) The GBPUSD on the H1 timeframe is currently in a consolidation phase, trading within a tight range around the 1.3797 level after a significant prior decline from the 1.3866 high. The recent four-hour candle closed marginally bearish at 1.37976, indicating a tentative balance between buyers and sellers at this juncture. The technical indicators present a mixed but cautiously optimistic short-term picture. The RSI (14) at 61.27 resides in bullish territory but is not yet overbought, suggesting there is room for further upside momentum should buyers regain conviction. The MACD histogram, however, tells a more nuanced story. While the MACD line (0.003103) remains below the signal line (0.003819), indicating persistent underlying bearish pressure, the positive values for both lines show that price action is still above its medium-term equilibrium. The immediate market structure is defined by a micro resistance at the session high of 1.38010 and support at the session low of 1.37956. A decisive break above 1.38010 could open a path toward the next resistance near 1.38300, with the RSI supporting this move. Conversely, a breakdown below 1.37956 would signal a resumption of the broader downtrend, targeting the recent swing low of 1.37140 and potentially lower toward the 1.3638 support zone.

Trade Setup Summary: • Bullish Scenario: A confirmed break and hold above 1.38020 (preferably on a closing basis) could signal a short-term bullish correction. Entry could be considered on a retest of this breakout level, with a stop loss below 1.37900 and an initial profit target at 1.38300. • Bearish Scenario: A rejection at 1.38010 followed by a break below 1.37956 would reaffirm bearish control. A short entry could be taken on a break below 1.37900, targeting 1.37140. The stop loss should be placed above 1.38150. • Outlook: The primary trend from the January high remains bearish. The current price action represents a corrective pause. Traders should await a clear break of the immediate 1.37956-1.38010 range to determine the next directional move, with a bias toward selling into strength unless price sustains above 1.38150.