GBPUSD has been range boung on the H4. On higher time frames, we have a bearish structure. On H4, we have a bullish structure right now but we are forming a lower low and lower high. At the price of 1.2600, we also have an inverse head and shoulder pattern which would induce the bearish pressure from the resistance.  We will be looking to short the market from the resistance once its tapped. For now, we are looking at the bearish structure. 

We have two trendlines in action. Earlier, the ascending trendline was broken out for sells with price action validation of opening and closing below the trendline. On the other hand, we have a descending trendline which is due for a retest. This retest is expected to be at the resistance level. Once this resistance level is in confluence, we will have two technical factors for shorts. 

The golden retracement area of 75-78.6% is in confluence of resistance level. This will be in technical confluence with other factors.

Both the EMA's are in bearish sentiment. EMA 50 was brokent out for buys but market has retested the EMA 200. This retest is followed by the confluence of other technical factors. Once the market rejects, we have a fine range towards the downside.

Both the oscillators are in a bearish region. RSI is at 43 and CCI is at -20. Once the market taps the resistance level, we might see the oscillators being neutralized. This neutralization will be our entry point for shorts. 

Inverse head and shoulders forming

Jun 02 2022

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