FX.co ★ GBPUSD Potential for Bearish Drop | 27th December 2022

Looking at the H4 chart, my overall bias for GBPUSD is bearish due to the current price being below the Ichimoku cloud, indicating a bearish market. If this bearish momentum continues, expect price to possibly continue heading towards the 1st support at 1.19008, where the 23.6% Fibonacci line is. In an alternate scenario, price could possibly head back up to retest the 1st resistance level at 1.22770, where the previous swing high is.

Trading Recommendation

Entry: 1.22770

Reason for Entry: Sell limit entry at the 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