GBP/USD Price Analysis: Testing strong resistance area, bears waiting to fade

GBP/USD has reached a key level of resistance structure.
The distribution perceived as the next thing to come from GBP could lead to a 4HR swing trading opportunity.

Ross J Burland FXStreet

GBP/USD is testing a strong resistance area which gives rise to a potential high probability shorting opportunity as follows:

Live D1 chart

The price action has been monitored since the following article was published:

GBP/USD Price Analysis: Bears lurking at weekly and daily resistances

as expected, as evidently illustrated below in the previous charts, cable was expected to climb to test the resistance:

Prior D1 chart

Prior 4HR setup charts

As can be observed, all is going to plan and we now need to see bearish conditions as the price is rejected at the current resistance area:

The market still has some leg work to do, but this a pair that can go on the watchlist and the downside fits the bearish Brexit narrative well.

Similarly, stubbornly long CFTC positioning highlights downside risks and the recent rise of no-deal Brexit probability bodes ill for the rather complacent sterling.

Compared to previous risks of a hard Brexit, GBP positing in at surprisingly high levels.

Then, when looking to the DXY for further confirmation, there is a bullish technical picture there as well:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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