GBP/USD – Technical Analysis (H1)

Price has moved right up to the supply zone at 1.3530, from which we previously recommended selling the British pound. This recommendation remains fully valid: there is a high probability of a corrective move down toward the 1.3500 area and subsequently 1.3440.

Key Levels:

1. 1.3530 – supply zone / sell area
2. 1.3500 – intermediate downside target
3. 1.3440 – primary downside target
4. 1.3580 – breakout level (invalidates shorts)

Primary Scenario:

Test of the 1.3530 zone, followed by a reversal lower toward 1.3500 and then 1.3440.

Alternative Scenario:

Invalidation of the short signal and a breakout toward 1.3580.

Analyst Commentary:

Risks for the bears remain relatively limited.