Currently, the price of the GBPUSD is in a downward trend. the price has gone through a large daily . This zone has been tested between 12 and 14 December. We can now determine that this has become a large (red). Price is in S/R zone 1 (orange) at the moment. this zone ends at point 1.26000. This is currently being tested several times and has even been broken once.
Now the are discussed. As you can see, (blue) SR-A (Support-Resistant line A) has been approached several times. You can find these point in the light blue circles. This SR-A has been a very important support line in the past. Price has since risen again but the bulls did not have enough power to raise the price. Because of this the price has dropped again. Now it can be confirmed that SR-A can be seen as a resistance .
The SR-B (Support and Resistant line B) (black) has also been approached several times. You can find these points in the gray circles. The price has not been able to pass the since December 6. This will therefore have an important part in our analysis.
I expect the price to reach the top of the S/R zone 1 (price can already fall before reaching this point). It happens in any case when reaching the top of the support and crossing the SR-A line.
After this, I expect that resistance will arise around the indicated 1H S/R zone (green). This will not be a very high one, but I expect a small contribution from the bulls. Hereafter the course will
pursue the 4H S/R line (1.24839). Here I also expect a struggle in the price which makes me think that bulls will have an input again.
Thereafter I expect the price to drop to S/R zone 2. This place could be a nice, perhaps temporary TP (Target Profit).
* But when the price would rise here, I expect the SR-B trend line to push the price down again. If this is not the case and the SR-B zone is exceeded, the next resistance will be the SR-A trend line. The SR-B then
becomes the new support .
Despite the possible exceedance of the SR-B, the price will not come quickly beyond the SR-A. Here you can also find the S/R zone 1. Because this zone is passed in the past, it becomes a resistance
zone. If situation 2 is the case then I also expect that S/R zone 2 will be reached.
If the analysis is successful, we can confirm the following winnings:
TP at point 1.24180 = 165 pips profit
You determine the stop-loss place yourself. I would advise to place it above the S/R zone 1 to achieve maximum gains. You can also take a position at the pullbacks in the chart. Stop-loss sizes are determined by your own risk management.
This is how it will go.