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July 6, 2022
The British Pound, US Dollar pair started to decline from the 1.2400 resistance level. GBP/USD traded below support at 1.2200 and continued bearish.
GBP/USD 4-Hour Chart (Trend: BEARISH)
On the 4-hour chart, the GBP/USD pair broke below the 1.2150 level, and both the 100-MA (red) and 200-MA (blue). The pair even traded below the 1.1900 support level with a low forming near 1.1897. The quote is currently trading slightly higher near 1.1970.
For the pair to turn bullish, the quote will first need to test resistance near the 1.2000 level and the 23.6% Fibonacci retracement level of the downward move from the swing high of 1.2405 to the swing low of 1.1898. Above this there is further resistance near 1.2150 and the 50% Fibonacci retracement level (of the 1.2405 high to the 1.1898 low). A break above here could see the quote test resistance from the key bearish trend line near 1.2190 and the 100-MA (red). Further gains could see the quote climb up as high as 1.2350 and the 200-MA (blue).
In contrast, if the pair continues bearish, the quote will first need to test support near the 1.1900 level. Below this there is further support near 1.1925. Further losses could see the quote drop down as far as 1.1850, a level not seen since March 2020.
Forex & Indices Analyst
James Stone is our Lead Forex and Indices Analyst.
James is a professional market analyst, with many years experience trading both forex and cryptocurrencies.
He holds an MBA in Investment Finance and is working towards his Ph.D.
Before joining FVPTrade, James served as a senior analyst at Forex Live.
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