FX.co ★ GBPUSD Potential for Bearish Continuation | 11th May 2022

On the H4, with price moving below the Ichimoku cloud, we have a bearish bias that price will drop from our 1st resistance at 1.24080 where the 38.2% Fibonacci retracement and pullback resistance is to our 1st support at 1.22677 in line with the 161.8% Fibonacci extension and horizontal swing low support is. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 1.24802 in line with the 61.8% Fibonacci retracement.

Trading Recommendation

Entry: 1.24080

Reason for Entry:

38.2% Fibonacci retracement and pullback resistance

Take Profit:1.22677

Reason for Take Profit:161.8% Fibonacci extension and horizontal swing low support

Stop Loss: 1.24802

Reason for Stop Loss:

61.8% Fibonacci retracement and horizontal pullback support