GBPUSD Chart Technical Outlook limited selloff with the Sterling basket highlighting buying dips
GBP/USD Technical outlook on the four-hour chart highlights GBP/USD breaking lower from the Wyckoff distribution zone. With bespoke support located at 1.2511 and 1.2497, this is seen as a liquidity-gathering spring that has an eventual bias to move to the upside. We have the completion of a bullish Crab formation located at 1.2473.
Conclusion: although there is ample scope for further intraday losses, I look for dips to be bought. Setting long’s (buying) between 1.2497 at 1.2473, looking for a move to the medium-term barrier of 1.2895 offers a favourable risk-reward.
Resistance: 1.2618 (bespoke), 1.2828 (swing high), 1.2895 (medium-term)
Support: 1.2511 (bespoke), 1.2497 (bespoke), 1.2473 (Crab)
