GBPUSD has been in a bearish trend on higher time frames, but on H4 turned into a correction phase, which pushed it up towards the resistance level. From the resistance level, it started moving down and is resting at the support level. This support level is priced at 1.2200. We will be waiting for this support to be pierced in order for the market to continue moving down. Right now, market has formed lower lows and lower highs. This structure indicates the bearish trend at the moment. 

Looking at the trendline, we have an ascending trendline, which is due for a breakout sell. The prices are still far from the trendline and need to be broken out for sells in order for the market to confirm the shorts. We will be waiting for this breakout to add another position.

The golden retracement level of 75-78.6% was in confluence with the resistance level. The market started to move down from that level and is currently at another support level. This indicates that the retracement level has played out and is currently moving down.

Both the EMA's are in a bearish trend, with a bearish death cross. The EMA 50 has been broken out for sells and are currently retesting the EMA 50. EMA 200 is still above the current prices and has been broken out earlier. This means that the bearish direction has been formed.

RSI is at 51 and CCI is at -34. Rsi is almost at the verge of converging towards the bearish side where as CCI is still bearish. The oscillators need to be bearish when the market structure breaks the support level. Once this happens, only then can we have a window towards the extended over sold area for both the oscillators. 

GBPUSD looking to break the support

Vasl Capital

Jun 20 2022

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