GBPUSD, Trading Between The Lines, Next Confirmation Awaiting!

Hello Traders Investors And Community, welcome to this analysis about recent events, the current price-structure, and what we can expect the next hours and days from GBPUSD. As the last times showed GBPUSD formed a high in the so-far struggling uptrend before it confirmed heavy bearish pressure to the downside, according to this case I detected some significantly important signs which added to the environment and can affect the further outcome of GBPUSD, therefore, we are looking at the 4-hour local timeframe.

As you can examine when looking at my chart is that GBPUSD traded above three important support-lines which held the overall trend to the upside. Two of these support-lines are broken now which gave increasing bearish signals to the downside in that environment for GBPUSD. The more trendlines of this sort are broken to the downside the greater becomes the possibility to continue bearish, as we have the third trendline still remaining in the structure it will be the last one to be tested and when broken down we can expect bearish pressure to the downside within a high given likelihood.

Overall GBPUSD has found some support currently at the 400-EMA you can see marked in black within my chart which is holding marginally to the upside, therefore we can expect a little consolidation period between the 200 and the 50-EMA which you can see in my chart before confirming the proper scenario, although a bullish breakout will be confirmed when it crosses the 50-EMA to the upside, the bearish scenario is more likely at the moment as we are still in a downtrend and there are major resistance levels in this structure that shouldn't be kept by side.

Currently Unlikely Bullish Confirmational Scenario (4-Hour Timeframe):


This formation can be traded on the short-side either with an aggressive entry when the price trades below the 400-EMA or with a conservative entry when the price breaks below the final third and last uptrend line, although the conservative approach is better, in this case, traders should decide according to own risk preferences and given informational output. Considering the unlikely bullish scenario an aggressive long-entry will be given when the red 50-EMA confirms to the upside and the conservative when GBPUSD takes out the upper resistance which you see marked in orange in my chart at the 1.263 level.

In this manner, thank you for watching, support for more market insight and good weekend!
Trading effectively is about assessing probabilities, not certainties.

Information provided is only educational and should not be used to take action in the markets.