FX.co ★ GBPUSD Potential For Bearish Continuation | 3rd 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 1.25863 where the horizontal overlap resistance and 61.8% fibonacci retracement to our 1st support at 1.24647 in line with the 38.2% Fibonacci retracement and swing low support. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 1.26592 where the horizontal swing high resistance and 61.8% fibonacci projection are.

Trading Recommendation

Entry: 1.25863

Reason for Entry:

Horizontal overlap resistance and 61.8% fibonacci retracement

Take Profit: 1.24647

Reason for Take Profit:38.2% Fibonacci retracement and swing low support

Stop Loss: 1.26592

Reason for Stop Loss:

Horizontal swing high resistance and 61.8% fibonacci projection