GBP/USD 4H Analysis – Bearish Breakdown Setup

This chart presents a bearish trading setup for GBP/USD on a 4-hour timeframe from OANDA.

Key Observations:
Ascending Channel Breakdown: GBP/USD was previously trading inside an ascending channel, but it has now broken below support, signaling a potential downtrend.

Retest Level: The price is currently retesting the broken support at 1.29645, which may act as a new resistance.

Resistance Zone: The key resistance level is at 1.30261, marking the last swing high before the breakdown.

Bearish Target: The expected downside target is at 1.26827, aligning with a previous demand zone and support level.

Trading Plan:
Entry: Consider short positions after rejection from the 1.29645 retest.

Stop Loss: Place above 1.30261 to avoid false breakouts.

Take Profit: First target at 1.26827, with the possibility of further downside.

Market Outlook:
If the price fails to reclaim the broken support and starts dropping, it could confirm a bearish trend continuation, making this a strong short setup.