The GBPUSD currency pair has recently surpassed a significant resistance level at 1.2545, signaling a potential completion of the preceding downward move from 1.2679, which ended at 1.2307. This breakout suggests a shift in market sentiment and hints at a potential reversal of the recent downtrend.
The break above 1.2545 indicates the possibility of further upward movement in the near future. Traders should anticipate a potential rise towards the next target at 1.2679, which corresponds to the previous high. If the price manages to surpass this level, it would confirm the resumption of bullish momentum and potentially lead to additional gains.
In terms of support, the immediate level to watch is 1.2500. As long as the price remains above this support level, the bullish outlook remains intact. However, a break below 1.2500 could trigger another downward move, potentially targeting the rising trend line on the 4-hour chart. A breach of the trend line support would then aim for the 1.2307 previous low.
In summary, the GBPUSD pair has broken above the 1.2545 resistance level, indicating a potential completion of the recent downward move. Further upside movement can be anticipated, with the next target at 1.2679. The immediate support is at 1.2500, and a break below this level may lead to another downward move. Traders should employ effective risk management strategies and remain informed about market developments to make well-informed trading decisions in the GBPUSD market.
