GBPUSD ANALYSIS IS READY (READ THE CAPTION)This chart represents a technical analysis of the GBP/USD currency pair on a 1-hour timeframe. Here’s a detailed breakdown of the analysis:
1. Current Price Level: The price is trading around 1.24152, as shown by the highlighted blue "BUY" box.
2. Resistance Zone:
A horizontal yellow line marks the key resistance zone around 1.2460–1.2547. This is where the price might struggle to move higher.
A stop-loss level is clearly indicated at 1.25474, suggesting this is the invalidation point for short positions.
3. Support Zone:
There is a clearly marked Target Zone at 1.22016, which serves as the price's potential downward target if the bearish scenario unfolds.
The yellow horizontal lines below the current price represent support areas where buyers might re-enter the market.
4. Bearish Scenario:
The blue arrows show a projected downward movement, indicating a possible price rejection from the resistance zone and a decline toward the 1.22016 target zone.
The analysis suggests a head-and-shoulders pattern, with the red curve marking the "head" and signaling a bearish reversal.
5. Volume Profile: The bars on the right indicate trading activity at various price levels, showing a concentration of volume near current levels, which may act as resistance.
This analysis seems to favor a bearish outlook, expecting a price drop after rejection at resistance. However, it is also safeguarded by a stop-loss to manage risk if the price breaks above the resistance.
