Technical Analysis 15 October 2026 GBP/USD H-1 The GBP/USD 1-hour chart demonstrates a sharp bearish sell-off followed by a strong, fast V-shaped recovery attempt. Price action has pushed rapidly back up to test a major horizontal support-turned-resistance level near 1.32298, while reclaiming ground above its short-term moving average line. 1. Core Price Action & Structure * Current Price: 1.32298 * Immediate Resistance Zone: 1.32298 – 1.32580 (Key horizontal barrier where prior support was broken, leading up to the recent swing peak). * Immediate Support Zone: 1.32000 – 1.31710 (Crucial demand region where short-term moving average support and reaction lows align). * Moving Average Dynamic: Price has closed cleanly above its short-term moving average line following a bullish surge, reflecting rapid intraday recovery momentum. 2. Indicator Confluence * Relative Strength Index (RSI - 14): Currently reading 55.39. This confirms a shift into bullish territory above the neutral 50 level, showing renewed upward momentum. * MACD (12, 26, 9): Standing at -0.001276 / -0.001887. While the MACD lines remain below zero, the signal line is curling upward with shrinking negative histogram bars, indicating strong bullish divergence/momentum shift. * Bears Power (13): Reads -0.000118, showing a significant reduction in selling pressure as buyers regain control. 3. Strategic Entry Scenarios Scenario A: Bullish Breakout (Long Entry) * Entry Trigger: A sustained 1-hour candle close above 1.32332 or a minor pullback retest toward 1.32000 near moving average support. * Stop Loss: 1.31710 (placed safely below immediate moving average support). * Take Profit Targets: * Target 1: 1.32580 * Target 2: 1.32870 Scenario B: Bearish Rejection (Short Entry) * Entry Trigger: A clear 1-hour bearish rejection candle at 1.32298 followed by a close back below 1.32000. * Stop Loss: 1.32450 (above immediate resistance high). * Take Profit Targets: * Target 1: 1.31710 * Target 2: 1.31420 Risk Management Note Due to the sharp V-shaped recovery, trading directly at the 1.32298 horizontal resistance carries overhead rejection risk. Wait for confirmed hourly candle closes above 1.32332 or a successful pullback test before taking high-probability positions. Maintain a minimum 1:2 risk-to-reward ratio on all executions.
