GBP/USD, Technical Analysis – H4

The asset continues to work off the “bullish flag” pattern we highlighted yesterday and may test the supply zone at 1.3430 as early as today. There is little doubt that bulls will take profits in this area while bears look to attack. Consequently, a downward reversal appears to be the most logical outcome.

Key Levels:

□ 1.3430 (key supply / resistance zone)

□ 1.3390 (short-term support)

□ 1.3350 (potential downside target)

Primary Scenario:

Rise toward 1.3430, followed by a downward reversal.

Alternative Scenario:

Breakout above 1.3430 with continuation of the uptrend.

Analyst Commentary:

The remaining upside potential is around 40 pips, which supports a tactical two-sided approach — considering both long positions toward the resistance and potential short entries on reversal signals.