The GBPUSD pair has recently made a significant move, breaking below the bottom of the rising price channel on the 4-hour chart. This development suggests that the uptrend from 1.3001 might need a more extended period of consolidation before potentially resuming its upward trajectory.
In light of this breakout, traders can expect range-bound trading in the coming days, with the pair likely to fluctuate between 1.3312 and 1.3434. These levels now become crucial in determining the pair’s next major move.
The 1.3312 support level is particularly important to watch. As long as the price remains above this key support, there’s still a possibility for the uptrend to resume. If the bulls can muster enough strength to push the pair above the 1.3434 resistance, we could see a renewed upside move. In this scenario, the next targets would be the psychologically important 1.3500 area, followed by 1.3600.
However, caution is warranted. A breakdown below the 1.3312 support would be a bearish signal, potentially indicating that the upside move has already peaked at 1.3434. If this occurs, traders should be prepared for a deeper correction, with the next downside targets at 1.3260 and possibly extending to the 1.3140 area.
As the GBPUSD navigates this critical juncture, market participants will be closely monitoring price action around these key levels. The pair’s behavior in the coming days will provide valuable insights into whether it can regain its upward momentum or if a more significant correction is in store.