GBPUSD Weekly Technical Outlook
The GBPUSD narket has been sideways in the past three weeks. Last week, price action retraced northward; threatening the high of the bearish candlestick printed three weeks ago but failed as bears managed to resist the move. This led to the printing of a bearish pinbar around an S/R zone, the 1.29470 area. We may see bears seize the initiative to push price action further southward this week.
On the daily time frame, the market is operating in a descending channel (black). However, the attempt by bulls to take price action northward in the channel last week Monday and Tuesday did not materialize as bears intervened and the market entered a consolidation. As the candlesticks printed since last week Thursday have been in favour of bears, we may see a southward turnaround this week should bears maintain their influence. Nevertheless, should market decide otherwise, at least on a temporary basis, the immediate resistance around 1.29900 may be exposed by bulls. However, I will see such a northward move as temporary in nature.
On the H4 time frame, price action has formed a minor triangle (magenta) and recent price action is squeezed around its tip. The triangle resistance seems to being rejected by price action, giving the printing of bearish candlesticks with upper wicks around triangle resistance. However, technically, only a southward break of the triangle, with a retest of the broken support trendline (triangle base) on a H4 closing basis will provide an impetus for a southward trading opportunity.
I am bearish GBPUSD but I will step aside for now until I see a significant bearish setup.
I may be wrong. Trade safe and prosper.