The GBPUSD currency pair has been trading in a sideways manner, moving within a range bound by the support level at 1.2307 and the resistance level at 1.2483. This consolidation phase has left traders contemplating the pair’s next potential move, with the direction yet to be determined.
As long as the resistance level at 1.2483 holds, the recent bounce from the support at 1.2307 may be viewed as a consolidation period within the broader downtrend from 1.2679. In this scenario, market participants anticipate the possibility of another downward move towards the next support level at 1.2200. A breakdown below the 1.2307 support level could trigger such a bearish continuation.
However, it is important to consider the alternative scenario in which the GBPUSD manages to break above the resistance level at 1.2483. Such a breakout would suggest that the downward move from 1.2679 has completed at 1.2307, potentially paving the way for a renewed upward momentum. In this case, the pair could aim for the next resistance level at 1.2545, followed by 1.2700.
Given the current uncertainty surrounding GBPUSD, traders are advised to closely monitor the price action and wait for a decisive move beyond the key levels mentioned. This would provide greater clarity regarding the pair’s future direction.
