FX.co ★ GBP/USD

GBP/USD H4 TECHNICAL ANALYSIS Hello. The Pound continues to show significant volatility, and the market remains sensitive to geopolitical events, news releases, or any statements that may influence traders’ sentiment. Sellers have been trying to push the price lower, but they have struggled to maintain strong control, losing roughly half of their positions over the past sessions. Despite this, the general trend still leans slightly bearish. If we anticipate a more substantial decline, sellers will need to break through and consolidate below 1.32520. The first target in this scenario is 1.31786, and if the price manages to hold there, a further drop toward 1.31234 can be expected, marking a more significant support zone. On the other hand, if buyers aim to resume an upward trend, they will need to break through and consolidate above 1.33691. Success at this level could drive the price toward 1.34307, and if momentum continues, a rise to 1.34894 is possible, which still has an open gap that may accelerate the bullish movement. GBPUSD H4: 1 - On the 4-hour chart, the Pound has retreated to the central area of the Bollinger Bands after actively moving along the lower band. To obtain a reliable signal for a continued decline, it is important to wait for a strong touch of the lower band and then monitor whether the bands open outward or remain stable. 2 - Regarding fractals, the nearest downside fractal was broken yesterday, reaching the target at the level of the fractal from December 9th. A new, closer downside fractal has now formed, serving as a target for the continuation of the decline. A breakout and consolidation below it could push the price toward the fractal from December 2nd at 1.31786. The nearest upside fractal will guide the potential recovery; a breakout and consolidation above it could see the price move toward the fractal from February 27th at 1.34894. 3 - The AO indicator is rising in positive territory, though the first peak has not yet formed. This suggests that while sellers may still attempt to continue the decline, a reversal could occur. For a reliable signal of price growth, traders should wait for active fading toward the zero line, which would indicate a potential bullish shift. In conclusion, the Pound is trading in a delicate balance between bullish and bearish pressure. Traders should closely monitor key levels around 1.32520 on the downside and 1.33691 on the upside, as consolidation and breakout at these points will likely determine the next directional move.