GBPUSD 1H Chart: Technical Analysis of Bearish Channel and Key Support
Bearish Channel and Price Structure: The chart illustrates an initial bullish move followed by the formation of a descending red channel, suggesting a shift in short-term momentum to bearish. Price recently broke down from an earlier ascending structure, confirming a potential change in trend dynamics. The current price action shows a retracement back towards the upper boundary of this bearish channel and previous resistance levels.
Resistance Zone Confluence: The red-shaded area at the top represents a significant supply zone, indicating an area where sellers have previously dominated. This zone also converges with the upper boundary of the newly formed descending red channel, creating a strong confluence of resistance where selling pressure is anticipated to emerge.
Fibonacci Retracement Levels: A Fibonacci retracement tool has been applied from the recent high (1.3624) to the recent low. The key retracement levels of 0.5 (1.3518), 0.618 (1.3543), and 0.71 (1.3563) fall within or immediately below the identified red resistance channel. These levels are often watched by traders as potential turning points or areas of re-accumulation/distribution.
Key Support Area & Target Zone: Below the current price, a wide green-shaded "Key Support Area" is identified, stretching from approximately 1.3440 down towards 1.3360. This zone likely represents a significant demand area where buyers are expected to re-enter the market, potentially serving as a target for a continued bearish move or a strong bounce point.
Disclaimer:
The information provided in this chart is for educational and informational purposes only and should not be considered as investment advice. Trading and investing involve substantial risk and are not suitable for every investor. You should carefully consider your financial situation and consult with a financial advisor before making any investment decisions. The creator of this chart does not guarantee any specific outcome or profit and is not responsible for any losses incurred as a result of using this information. Past performance is not indicative of future results. Use this information at your own risk. This chart has been created for my own improvement in Trading and Investment Analysis. Please do your own analysis before any investments.
Bearish Channel and Price Structure: The chart illustrates an initial bullish move followed by the formation of a descending red channel, suggesting a shift in short-term momentum to bearish. Price recently broke down from an earlier ascending structure, confirming a potential change in trend dynamics. The current price action shows a retracement back towards the upper boundary of this bearish channel and previous resistance levels.
Resistance Zone Confluence: The red-shaded area at the top represents a significant supply zone, indicating an area where sellers have previously dominated. This zone also converges with the upper boundary of the newly formed descending red channel, creating a strong confluence of resistance where selling pressure is anticipated to emerge.
Fibonacci Retracement Levels: A Fibonacci retracement tool has been applied from the recent high (1.3624) to the recent low. The key retracement levels of 0.5 (1.3518), 0.618 (1.3543), and 0.71 (1.3563) fall within or immediately below the identified red resistance channel. These levels are often watched by traders as potential turning points or areas of re-accumulation/distribution.
Key Support Area & Target Zone: Below the current price, a wide green-shaded "Key Support Area" is identified, stretching from approximately 1.3440 down towards 1.3360. This zone likely represents a significant demand area where buyers are expected to re-enter the market, potentially serving as a target for a continued bearish move or a strong bounce point.
Disclaimer:
The information provided in this chart is for educational and informational purposes only and should not be considered as investment advice. Trading and investing involve substantial risk and are not suitable for every investor. You should carefully consider your financial situation and consult with a financial advisor before making any investment decisions. The creator of this chart does not guarantee any specific outcome or profit and is not responsible for any losses incurred as a result of using this information. Past performance is not indicative of future results. Use this information at your own risk. This chart has been created for my own improvement in Trading and Investment Analysis. Please do your own analysis before any investments.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.