GBP/USD, Technical Analysis – H4

The overall structure remains bullish, as evidenced by consistently higher lows — a key hallmark of an uptrend. However, the price action has also shown notable deterioration, particularly with the break of the trend’s speed line. We are therefore at a critical juncture: buyers must summon sufficient strength for a fresh upward swing, or a sharp decline will likely follow, sweeping all liquidity below the current range. The key control support stands at 1.3340.

Key Levels:

□ 1.3340 – Primary control support

□ 1.3260 – Next downside target

Primary Scenario:

Continuation of consolidation above 1.3340.

Alternative Scenario:

Breakdown below 1.3340, targeting 1.3260.

Analyst Commentary:

Breakout trades below the 1.3340 support are considerably safer than market-price entries at current levels.