Bearish outlook on GBPUSD: 18 January

On the H4 timeframe, prices have broken above the resistance zone at 1.2300, which coincides with the 78.6% Fibonacci retracement. A throwback to this level would be a downside confirmation, providing an opportunity to ride the drop to the next support zone at 1.2100. Stochastic RSI is in the overbought region above 80, which also supports our bearish bias.