Technical analysis off GBP/USD (British Pound / U.S. Dollar) on the 1-hour timeframe, forecasting a potential downward correction from a key resistance level.
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🧠Analysis Overview:
Current Bias: Bearish reversal expected
Trend Context: Price has reached a significant resistance level after a strong rally
Indicators:
EMA 50 (1.35011) and EMA 200 (1.34946) show bullish alignment, but price is overextended.
RSI (14): At 79.85, deep into overbought territory—suggesting potential for a downside pullback.
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đź“Ś Key Technical Elements:
1. Resistance Level:
Price has sharply rallied into the 1.36159–1.36200 area and is now showing signs of rejection (marked by red arrow).
This level acted as a prior supply zone and aligns with overbought RSI conditions.
2. Projected Bearish Move:
The idea suggests a two-phase decline:
First drop to EMA cluster/support level near 1.35011–1.34946
Then extended move to 1.33787 (final target point)
This would represent a total drop of about 1.8% from the top.
3. Support Levels:
Multiple support zones identified:
Intermediate support: Around EMA 50/200 zone
Major support target: Horizontal level at 1.33787
4. Bearish RSI Signal:
RSI nearing extreme overbought (>70) and beginning to curve down, supporting potential short setup.
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🎯 Trading Idea:
Setup: Bearish reversal from resistance zone
Entry: Near 1.3615–1.3620 (confirmation needed)
First Target: 1.3500 zone
Final Target: 1.33787
Stop-Loss: Above recent highs (around 1.3630+)
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🛑 Risk Considerations:
Multiple economic event icons shown — news-driven volatility (GBP/USD is sensitive to both UK and U.S. data).
A strong breakout above the resistance zone would invalidate the bearish setup and could trigger further bullish continuation.
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âś… Summary:
This is a short setup for GBP/USD based on an overbought RSI, resistance rejection, and clear target levels. The forecast suggests a potential 1.8% downside, making this a well-defined reversal opportunity, provided confirmation aligns.
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---
🧠Analysis Overview:
Current Bias: Bearish reversal expected
Trend Context: Price has reached a significant resistance level after a strong rally
Indicators:
EMA 50 (1.35011) and EMA 200 (1.34946) show bullish alignment, but price is overextended.
RSI (14): At 79.85, deep into overbought territory—suggesting potential for a downside pullback.
---
đź“Ś Key Technical Elements:
1. Resistance Level:
Price has sharply rallied into the 1.36159–1.36200 area and is now showing signs of rejection (marked by red arrow).
This level acted as a prior supply zone and aligns with overbought RSI conditions.
2. Projected Bearish Move:
The idea suggests a two-phase decline:
First drop to EMA cluster/support level near 1.35011–1.34946
Then extended move to 1.33787 (final target point)
This would represent a total drop of about 1.8% from the top.
3. Support Levels:
Multiple support zones identified:
Intermediate support: Around EMA 50/200 zone
Major support target: Horizontal level at 1.33787
4. Bearish RSI Signal:
RSI nearing extreme overbought (>70) and beginning to curve down, supporting potential short setup.
---
🎯 Trading Idea:
Setup: Bearish reversal from resistance zone
Entry: Near 1.3615–1.3620 (confirmation needed)
First Target: 1.3500 zone
Final Target: 1.33787
Stop-Loss: Above recent highs (around 1.3630+)
---
🛑 Risk Considerations:
Multiple economic event icons shown — news-driven volatility (GBP/USD is sensitive to both UK and U.S. data).
A strong breakout above the resistance zone would invalidate the bearish setup and could trigger further bullish continuation.
---
âś… Summary:
This is a short setup for GBP/USD based on an overbought RSI, resistance rejection, and clear target levels. The forecast suggests a potential 1.8% downside, making this a well-defined reversal opportunity, provided confirmation aligns.
Feedback My idea like and comment's 🙏
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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.
Join My Official Channel Link
t.me/goldprotreader
Join My Public Channel Link
t.me/goldprotreader
t.me/goldprotreader
Join My Public Channel Link
t.me/goldprotreader
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.