Huge Flag pattern is formed on 4H. Price has broken the previous flag formation, resulting in a larger flag.
As GBPUSD is currently near support, it is deciding on whether the next price movement will be bullish or bearish. A bearish confirmation would be a break of the support zone, for a higher risk trade, an entry can be placed at the break down. For a lower risk, look for a retest of the support turned into resistance, before entering a short.
Another possibility would be that GBPUSD rises first, retracing up as GBPUSD has been declining without a retracement, there is a high possibility of a retracement to the 0.618 level as shown on the charts. This could be a potential short position if the 4H closes bearish, or if there is a huge bearish momentum.
My bias of GBPUSD is bearish as the flag formation shows very strong sellers wearing out the buyers. Lower highs and the same support resulting in exhaustion of buyers.
As GBPUSD is currently near support, it is deciding on whether the next price movement will be bullish or bearish. A bearish confirmation would be a break of the support zone, for a higher risk trade, an entry can be placed at the break down. For a lower risk, look for a retest of the support turned into resistance, before entering a short.
Another possibility would be that GBPUSD rises first, retracing up as GBPUSD has been declining without a retracement, there is a high possibility of a retracement to the 0.618 level as shown on the charts. This could be a potential short position if the 4H closes bearish, or if there is a huge bearish momentum.
My bias of GBPUSD is bearish as the flag formation shows very strong sellers wearing out the buyers. Lower highs and the same support resulting in exhaustion of buyers.