FX.co ★ GBPUSD Potential for Bearish Drop | 20th December 2022

Looking at the H4 chart, my overall bias for GBPUSD is bullish due to the current price crossing above the Ichimoku cloud, indicating a bullish market. Expecting price to head back up to possibly continue heading towards the 1st resistance at 1.22770, where the previous swing high is. In an alternative scenario, price could possibly head back down to retest the 1st support at 1.19008, where the 78.6% Fibonacci line is.

Trading Recommendation

Entry: 1.22770

Reason for Entry:

Retest 1st resistance line

Take Profit: 1.19008

Reason for Take Profit: 1st support line

Stop Loss: 1.24465

Reason for Stop Loss:

Recent swing high