GBPUSD has experienced a notable pullback from its recent high of 1.3141, dropping to 1.2866 and breaking below the rising trend line on the 4-hour chart. This technical development suggests that the upside move that commenced from 1.2590 has likely reached its peak at 1.3141, and bearish sentiment is gaining momentum.
Bears in Control:
With the break below the rising trend line, bears have gained control of the GBPUSD pair. This signals a potential shift in market sentiment from bullish to bearish. Traders and investors are now paying close attention to further price action and additional bearish confirmation to assess the strength of the downward trend.
Next Targets at 1.2800 and 1.2750:
As the pullback continues, the next significant targets for GBPUSD are situated at 1.2800 and 1.2750. These levels could act as support zones, and a decisive break below them may indicate further downside potential. Traders should closely monitor price movements and watch for any signs of selling pressure to determine the continuation of the bearish trend.
Immediate Resistance at 1.3000:
On the upside, the immediate resistance level stands at 1.3000. A break above this level might lead to a short-term recovery or a retest of higher levels. However, considering the recent break of the rising trend line, traders will approach any potential rally with caution and watch for possible resistance near previous highs.
In conclusion, GBPUSD has extended its pullback, breaking below the rising trend line on the 4-hour chart and indicating a potential end to the recent upside move. The pair’s next targets are at 1.2800 and 1.2750, while immediate resistance is at 1.3000.
