visit fourtrades.com for more insite Daily Chart Insights (Image 1): The GBP/USD pair is currently testing a significant liquidity zone around the 1.30900 level. We observe that price action recently rejected from a previous high and is now dipping into this liquidity area, which could serve as a temporary support level. There's a possibility of a further drop to around 1.30000, a key psychological level where more buyers could step in. This setup suggests that we may experience a corrective move before any major reversal or continuation of the downtrend.
4-Hour Chart Analysis (Image 2): On the 4-hour chart, we see a clearer structure forming. Price has entered a no-trade zone marked by a liquidity area just above 1.30900. This suggests that institutions may be building orders here, waiting for retail traders to commit. If price breaks above this zone, a rally to around 1.31700 could be expected, where we find the next major area of interest. However, if we see a clear rejection, it would signal the start of a bearish continuation towards the 1.30000 liquidity level.
1-Hour Chart Breakdown (Image 3): Looking closer on the 1-hour chart, we notice a descending wedge pattern, indicating that the bearish momentum is weakening. However, caution is necessary, as the wedge can break either way. The yellow highlighted zone shows a consolidation period, where bulls and bears are battling it out. A break above this could target the 1.31700 resistance level, whereas a downside breakout might lead us toward the lower support zones at 1.30000 or even lower.
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