GBP/USD, Technical Analysis – H4

The pair has reached the critical supply zone at 1.3450–1.3460, the same area that previously triggered the formation of the Over&Under bearish reversal pattern. Should this formation retain its validity, a decline may begin directly from current levels. The next comparable zone lies at 1.3550–1.3560, where a sloping PPZ converges with the most recent high.

Key Levels:

⬜ 1.3450–1.3460 — critical supply zone (Over&Under)

⬜ 1.3550–1.3560 — secondary supply zone (PPZ confluence)

⬜ 1.3300 — primary downside target

Primary Scenario:

Decline toward 1.3300.

Alternative Scenario:

Advance to 1.3550 followed by a sharp reversal lower.

Analyst Commentary:

Given the equal probability of both scenarios, additional confirmatory signals will be required before entering a trade.