GBP/USD 4H Chart Analysis: Potential Market MovementIn this analysis, I'm presenting a potential price action forecast for GBP/USD on the 4-hour timeframe. The chart highlights a combination of technical patterns and key price levels to anticipate future market behavior. Here are the details of the setup:
Market Context:
The pair is currently trading within a clear bearish trend, as shown by the recent lower lows and lower highs.
The sell zone aligns with a key resistance level, suggesting a potential area for bearish continuation.
Projection and Scenarios:
Blue lines outline two potential paths for market movement:
Bullish retracement: Price might push higher to test the identified resistance area around 1.2440 before reversing downward.
Bearish continuation: Following the retracement, the market could resume the downtrend, targeting the support levels near 1.2265 and 1.1900.
Technical Zones:
Resistance Area: 1.2440, highlighted as the probable turning point.
Support Levels: 1.2265 (short-term) and 1.1900 (major target).
The green zone marks potential retracement before price continuation.
Risk Management:
Traders should watch for price action confirmation near the resistance area before entering short positions.
Stop losses should be placed above the resistance zone to minimize risk.
Indicators and Confluence:
The chart reflects a clear structure, with previous price reactions adding confluence to the identified zones.
Conclusion: This setup offers a well-defined risk-to-reward opportunity for those aligning with the trend. Remember to use proper risk management and wait for confirmation before taking any trades.
