GBP/USD Technical Analysis

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📊 GBP/USD Technical Analysis
Chart Timeframe: 4H
Date: July 4, 2025
Indicator Used: Ichimoku Cloud
Target Price Highlighted: 1.38070

🔍 Key Observations:
1. Support & Resistance Zones:
Resistance Zone: ~1.3800 - 1.3850 → A historically strong rejection area.

Support Zone: ~1.3530 - 1.3560 → Price previously bounced from here and re-tested.

2. Ichimoku Analysis:
Cloud (Kumo): Currently thin and flat, suggesting a period of consolidation and potential breakout.

Price Position: Price is within the Kumo, indicating indecision but leaning toward bullish bias.

Senkou Span A is flattening, while Span B is acting as a support base.

3. Bullish Path Projection:
The dotted white line suggests a retest of the lower cloud boundary, then a bounce to the upper resistance at 1.38070.

This projection aligns with a bullish reversal pattern from the lower support zone.

📈 Bullish Scenario:
Price dips into support (~1.3550), finds buying pressure, and breaks out of the Ichimoku cloud.

Confirmation of bullish momentum once price closes above 1.3700 and the cloud turns green with a bullish TK cross.

⚠️ Risk Factors:
If price breaks below 1.3550, the bullish setup becomes invalid.

A strong rejection from the top of the cloud (~1.3680–1.3700) could push price back down to the support range.

🧠 Conclusion:
The chart reflects a bullish setup in progress, but currently in a neutral consolidation phase inside the Ichimoku cloud. A clean break above the cloud with volume would signal momentum toward the 1.38070 target.

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