The GBPUSD currency pair experienced a failed attempt to break above the resistance level at 1.2545, resulting in a pullback to 1.2425. The subsequent break below the support level at 1.2430 suggests that the pair remains within the downside move that originated from 1.2679. Traders are closely monitoring the pair for further indications of a potential decline in the coming days.
The failure to surpass the resistance level at 1.2545 has raised concerns among traders, as it indicates a possible continuation of the downward momentum in GBPUSD. The pullback from this level and the subsequent break below the support level at 1.2430 serve as confirmation of the ongoing downside move. Traders will be closely watching for further price action that supports this bearish outlook.
The next potential target for GBPUSD lies at the previous low of 1.2307. If the pair continues its descent, reaching and breaking below this level, it would likely aim for the 1.2200 area, where additional support may be found. These levels represent crucial support zones where traders will closely analyze the price action for potential reversals or further downside continuation.
On the upside, a decisive break above the resistance level at 1.2545 would challenge the prevailing bearish sentiment. Such a move would suggest that the downside move has completed at 1.2307 and could potentially pave the way for another rise towards the 1.2700 level. Traders will closely monitor the strength of any bullish momentum near this resistance level to assess the potential for a sustained upward move.
