FX.co ★ GBPUSD Potential For Bearish Continuation | 2nd June 2022

On the H4, with MACD moving in bearish momentum and price breakout from ascending channel, we have a bearish bias that price will drop from our 1st resistance at 1.25038 where the horizontal overlap resistance is to our 1st support at 1.23950 in line with the 61.8% Fibonacci projection, 50% Fibonacci retracement and overlap support. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 1.25863 where the horizontal overlap resistance is.

Trading Recommendation

Entry: 1.25038

Reason for Entry:

Horizontal overlap resistance

Take Profit: 1.23950

Reason for Take Profit: 61.8% Fibonacci projection, 50% Fibonacci retracement and overlap support

Stop Loss: 1.25863

Reason for Stop Loss:

Horizontal overlap resistance