FX.co ★ GBPUSD Potential For Bearish Continuation | 7th June 2022

On the H4, with price breaking through the ichimoku indicator in a downwards 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 is to our 1st support at 1.23905 in line with the 50% Fibonacci retracement, 78.6% fibonacci retracement and overlap 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

Take Profit: 1.23905

Reason for Take Profit:50% Fibonacci retracement, 78.6% fibonacci retracement and overlap support

Stop Loss: 1.26592

Reason for Stop Loss:

Horizontal swing high resistance and 61.8% fibonacci projection