Published: 26 January 2026,07:00
Chart The Market
GBPUSD, H4:
The GBPUSD pair has confirmed a significant bullish reversal, completing a well-defined inverse head-and-shoulders pattern. The decisive break above the pattern’s neckline provides a strong technical signal that the prior downtrend has likely concluded, establishing a new bullish bias.
Following the sharp rally, the pair is approaching overextended territory, making a near-term technical pullback a plausible scenario. The key level to watch on any retracement is the 61.8% Fibonacci retracement of the initial breakout move, situated at 1.2783. A successful defense of this level would suggest the pullback is corrective and that the broader bullish trajectory remains intact.
The bullish structure is supported by momentum indicators, though they signal caution. The Relative Strength Index has entered overbought territory, reflecting strong near-term momentum but also increasing the likelihood of consolidation. The Moving Average Convergence Divergence indicator shows bullish divergence and remains in positive territory, confirming the shift in underlying momentum.
The breakout is technically sound and favors further upside in the medium term. However, the overbought RSI suggests the risk of a short-term pullback has risen. Traders should view any dip toward the 1.2783 Fibonacci support as a potential buying opportunity within the new uptrend, provided the level holds. A sustained break below the pattern neckline near 1.2700 would be required to invalidate the bullish reversal scenario.
Resistance Levels: 1.3685, 1.3768
Support Levels:1.3615, 1.3530
ETH, H4
Ethereum has executed a bearish breakdown below its recent, extremely narrow consolidation range near the $2,945 level. This violation signals a failure of the prior equilibrium and suggests sellers have regained control, pressuring the price toward the next significant support zone below $2,800, where a minor technical rebound has since occurred.
The immediate technical focus is the reclaimed range support near $2,945. For the bearish structure to remain validated, ETH must sustain trading below this level. A recovery back above it would instead indicate a false breakdown and potential for a more prolonged consolidation.
Momentum indicators align with the negative price action. The Relative Strength Index has penetrated into oversold territory, reflecting intense selling pressure, while the Moving Average Convergence Divergence indicator remains entrenched below its zero line, confirming that bearish momentum is the dominant near-term force.
The breakdown from the tight consolidation range has shifted the near-term bias to bearish. While the oversold RSI condition increases the potential for a technical rebound, the primary structure favors further downside exploration as long as price remains capped below $2,945. The bearish scenario would be invalidated by a sustained recovery above this key resistance level.
Resistance Levels: 3045.00, 3200.00
Support Levels: 2677.20, 2496.00
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