The GBPUSD currency pair has been showing resilience as it maintains its upward trajectory from the 1.2307 level. However, in recent trading sessions, the pair has encountered resistance at the upper boundary of a rising price channel on the 4-hour chart, leading to a potential consolidation phase.
Over the next couple of days, it is likely that the pair will experience a period of consolidation as it digests recent gains and seeks to gather further momentum for its upward move. This consolidation is a normal occurrence in the context of a sustained uptrend and can provide traders with opportunities to reassess their positions.
Despite the short-term consolidation, the overall bullish outlook for GBPUSD remains intact as long as the key support level at 1.2486 holds. If this support level remains unbroken, it suggests that buyers are still in control and the uptrend is likely to persist. In such a scenario, the next target for the pair would be at the previous high of 1.2679, which represents an important resistance level that could attract further buying interest.
On the downside, a breakdown below the 1.2486 support level could potentially trigger another downward move towards the lower boundary of the rising price channel. A breach of the channel support would then bring the focus back to the 1.2307 previous low, which would serve as a critical level of support.
In conclusion, GBPUSD is currently facing resistance at the upper boundary of a rising price channel, leading to a potential consolidation phase. However, the overall uptrend remains intact as long as the key support level at 1.2486 holds. Traders should watch for a potential breakout above the resistance or a breakdown below support for further directional cues. By staying vigilant and adapting their strategies accordingly, traders can navigate the GBPUSD market with confidence.
