GBP/USD, Technical Analysis – H4
GBP/USD is testing the critical 1.3450–1.3460 supply zone that previously generated an Over&Under reversal. A confirmed rejection would open the path toward 1.3300, while a break higher targets the next confluence area near 1.3550–1.3560.
The pair has reached the critical supply zone at 1.3450–1.3460, the same area that previously triggered the formation of the Over&Under bearish reversal pattern. Should this formation retain its validity, a decline may begin directly from current levels. The next comparable zone lies at 1.3550–1.3560, where a sloping PPZ converges with the most recent high.
Key Levels:
⬜ 1.3450–1.3460 — critical supply zone (Over&Under)
⬜ 1.3550–1.3560 — secondary supply zone (PPZ confluence)
⬜ 1.3300 — primary downside target
Primary Scenario:
Decline toward 1.3300.
Alternative Scenario:
Advance to 1.3550 followed by a sharp reversal lower.
Analyst Commentary:
Given the equal probability of both scenarios, additional confirmatory signals will be required before entering a trade.
Nikolai Krishtopov is a Market Analyst at Investizo with more than 15 years of experience in the financial markets industry and over a decade of trading experience. His areas of focus include forex and crypto markets, technical analysis, intraday trading and market behaviour.