GBPUSD Forecast – 1.32077 bearish reversal start point

GBPUSD chart analysis

Price could not make its move below current support at 1.30968 as it was mentioned in the previous analysis. The price tried to move below the current support on Tuesday last week.

We can see large wicks on the bottom side and on the upper side. The candle opens and closes the day at the same price. This candle formation tells us that the price was in the indecision area.

Bulls were holding the price from moving down and selling pressure from above held the price where it is.

Rest of the candles after Tuesday shows us market indecision. All candles that were formed are inside large bearish candles from last week. This means the price needs a breakout from the current area.

GBPUSD Chart Forecast

Below current support 1.30968 we have 1.29795 which is the support where the price will stop after breaking below from current support level.

We can see candles are making a pressure on the current support which indicates future move. The price is also on the downtrend resistance line that adds more resistance to the current price.

We can say the price is now in the confluence of the support and resistance levels. From there the price will need to break out.

We can see a small triangle formed which the price will need to break on the upper or on the down side.

On the upper side we have 1.32077 resistance which will prevent price from moving higher. This resistance did not present a strong obstacle for the price in the previous attempt to move higher. So we can expect the same if the price breaks above the current indecision area.

If the price breaks above and reaches 1.32077 we could see a bearish price action signal. Because of the bearish market we should look for potential bearish signals. At 1.32077 we could see that signal which will target 1.30968 as a first target and then 1.29795 as the final target.