GBPUSD

On the H4, with price expected to bounce off the stochastics indicator, we have a bullish bias that price will rise to our 1st resistance of 1.29908 in line with the 61.8% Fibonacci retracement and horizontal pullback resistance from our 1st support of 1.27951 in line with the 78.6% Fibonacci projection. Alternatively, price may break 1st support and head for 2nd support at 1.26517 in line with the 100% Fibonacci projection.

Intraday bias in GBP/USD remains on the downside as down trend continues. Next target is 100% projection of 1.3641 to 1.2999 from 1.3297 at 1.2655. Sustained break there will target 161.8% projection at 1.2258. On the upside, above 1.2822 minor resistance will turn intraday bias neutral and bring consolidation first, before staging another decline.

In the bigger picture, rise from 1.1409 (2020 low) has completed at 1.4248, ahead 1.4376 long term resistance (2018 high). Decline from 1.4248 could still be a corrective move, or it could be the start of a long term down trend. In either case, deeper decline would be seen back to 61.8% retracement of 2.1161 to 1.1409 at 1.2493. In any case, break of 1.3158 support turned resistance is needed to be the first sign of medium term bottoming. Otherwise, outlook will stay bearish in case of rebound.

Comment:

On the H4, we have a bullish bias that price will rise from 1st support level of 1.27058 which lines up with 100% fibonacci projection towards the 1st resistance level of 1.29752 which lines up with 61.8% fibonacci projection.

Areas of consideration:

H4 1st resistance at 1.29752
H4 1st support at 1.27058
H4 2nd support at 1.26020