Outlook on GBPUSD: Bearish play seen

5 nov 2021

On the daily time frame, we are seeing bearish order flow with prices forming lower lows and highs. On the H4 time frame, a pullback to test the resistance zone at 1.3550 which coincides with the 38.2% Fibonacci retracement and 100% Fibonacci extension, presents an opportunity to play the drop with 1.3420 as the next support target. A break below this level could see prices push lower to the next support area at 1.3280, in line with the -27% Fibonacci retracement. The Ichimoku cloud and EMA are showing signs of bearish pressure as well.