Discover the latest GBPUSD trend analysis on the 4H chart. Uncover insights and strategies to maximize your profits in the forex market.
GBPUSD Trend Analysis On The 4H Chart Profit Surging!
GBPUSD 4H Chart Analysis: Trend Insight and Trade Plan
The GBPUSD currency pair, as observed on the 4-hour timeframe, is currently exhibiting signs of a potential bullish reversal, with a suggested entry near the 1.32696 price level. This analysis outlines retracement considerations, key target levels, and invalidation criteria based on technical structure and price behavior.
✦ Current Market Overview
As of May 18, 2025, GBPUSD is priced at 1.32696. The market has formed a recent consolidation structure, showing attempts to hold above key support. The setup presented encourages buying opportunities based on the expectation of a bullish continuation or breakout from the current price zone.
✦ Retracement Zone and Entry Strategy
The green highlighted area on the chart represents the retracement or demand zone. If price dips into this area, it is seen as a potential accumulation point for buyers. Key takeaways include:
- Retracement Zone Range: Approximated between 1.31394 (low) and the lower edge of the green zone.
- Candle Close Below Green Zone: If price closes below this zone, the bullish setup becomes invalid.
- Stop Loss (SL): Set at 20 pips below entry to minimize downside risk.
This retracement zone serves two purposes:
- Acts as a confluence area for potential bullish reversals.
- Defines the boundary for invalidation – helping traders manage entries and exits more effectively.
Traders are advised to wait for confirmation candles in the form of bullish engulfing, pin bars, or strong momentum candles before entering trades.
✦ Target Levels and Profit Zones
Based on the structure and projection from the 4H chart, the following are the defined profit targets:
➤ Target 1 (TP1)
- Price Level: 1.33596
- Pip Gain: Approximately +90 pips from 1.32696
- This level coincides with a previous resistance zone and the recent high, making it a strong first profit-taking level.
➤ Target 2 (TP2)
- Price Level: 1.34016
- Pip Gain: Approximately +132 pips from 1.32696
- This level is likely to attract profit booking but also may act as a breakout level if bullish momentum sustains.
➤ Target 3 (TP3)
- Price Level: 1.34436
- Pip Gain: Approximately +174 pips from 1.32696
- This represents an extended target and may take time to reach depending on broader market sentiment and USD strength.
These targets are calculated based on historical price action, resistance zones, and Fibonacci extensions.
✦ Trade Setup Validity
⚠️ Invalidation Condition:
If the price falls below the green zone and closes beneath it, the bullish setup becomes invalid. This indicates a potential shift in market sentiment from bullish to bearish, warranting re-evaluation of positions.
✦ Key Trading Considerations
- Not a Signal – The chart expresses an analytical view, not a guaranteed trade recommendation.
- Price Behavior Scenarios:
• The pair may directly move upward if strong buying interest emerges.
• Alternatively, a pullback toward the green zone before moving higher is also probable. - Entry Timing: Wait for price action confirmation. Jumping in prematurely may expose you to unnecessary risk.
- Risk Management: Use appropriate lot sizes based on your account size and risk tolerance. A 20-pip stop loss is suggested, but may be adjusted per volatility.
✦ Technical Summary
| Component | Value |
|---|---|
| Current Price | 1.32696 |
| TP1 | 1.33596 |
| TP2 | 1.34016 |
| TP3 | 1.34436 |
| Stop Loss (SL) | ~20 Pips Below Entry |
| Setup Validity | Only Above Green Zone |
| Chart Timeframe | 4-Hour (H4) |
| Strategy Type | Swing/Intraday |
| Entry Confirmation | Price Action within Zone |
This GBPUSD analysis on the 4-hour chart suggests a short- to medium-term bullish opportunity, provided that key support levels remain intact. The structured approach with precise stop-loss, entry, and target points makes this strategy suitable for disciplined traders looking to capture upside movement in GBPUSD.
However, patience and confirmation are critical. Do not trade solely based on forecasted levels—let price guide your entries with meaningful patterns and volume.
⚠️ Trading Disclaimer:
This analysis is for informational and educational purposes only. It does not constitute financial advice or a trade signal. Forex and CFD trading involve significant risk and may not be suitable for all investors. Past performance is not indicative of future results. Always perform your own research and consult a licensed financial advisor before placing trades. Never invest money you cannot afford to lose.