GBPUSD is still bearish on higher timeframes. Seemingly, there is a correction going on on the H4 timeframe and market has reached its exhaustion point at the resistance level. Overall, market has formed a lower low and lower high and is in a bearish trend. Once this trend continues and market falls below the support area of 1.2040, we will see a dump in the pair.

There is an ascending trendline which is due for a breakout sell. On the other hand, we have a descending trendline which has been tapped by the price action and the market has the potential to reject this area and continue moving down.

The retracement area of 75-78.6% is slightly above the resistance turn support. This area is usually the wick area and stops are hunted in this region. We can factor in the shorts from this level.

The EMA 50 is hovering up and about the current price action. There is no clear direction on the EMA. Although the EMA has a massive slanting bearish curve, we can anticipate the market move back below the EMA 50 once the down push is triggered during the FOMC move.

The oscillator of RSI is currently at 60. The window towards the over bought region is only 10 points. Once market reached the over bought region and market is at the resistance, we can wait for the bearish divergence for the final push down.. On the other hand, once the oscillators falls below the 50 level, it will turn into the bearish region. 

GBPUSD bearish

Jul 27 2022

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