FX.co ★ GBPUSD Potential For Bearish Continuation | 9th September 2022

On the H4, prices seem to still be in a bearish momentum and respecting the ichimoku cloud. Prices have rebounded slightly but if bearish momentum continues it should move toward the first support at 1.1437 levels where the 161.8% extension sits. Alternatively, if it fails to break this level, it might look to test the first resistance at 1.1613 where the previous swing high sits subsequently the second resistance at 1.1760 level where the 61.8% projection and 38.2% retracement sits

Trading Recommendation

Entry: 1.1613

Reason for Entry:

Pull back sell entry

Take Profit: 1.1437

Reason for Take Profit:

161.8% fibonacci extension

Stop Loss: 1.1760

Reason for Stop Loss:

Previous swing low, overlapping resistance