GBPUSD , H4 | Potential Bearish Drop

43031 gbpusd h4 potential bearish drop

Type:

Bearish Breakout

Key Levels:

Resistance: 1.19183

Pivot: 1.1878

Support: 1.17651

Preferred Case:

On the H4, with prices moving below the ichimoku indicator and within the descending channel, we have a bearish bias that price will drop to our pivot at 1.1878 where the pullback support and 38.2% fibonacci retracement are. Once there is downside confirmation of price breaking pivot structure, we would expect bearish momentum to carry price to our 1st support at 1.17651 where the 61.8% fibonacci projection and 161.8% fibonacci extension are.

Alternative Scenario:

Alternatively, price could rise to 1st resistance at 1.19183 in line with the pullback resistance.

Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% and 68% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Written by Desmond Leong

Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.


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