The GBPUSD pair is currently facing resistance from a falling trend line on the 4-hour chart, reaffirming its position within a downtrend that began at 1.3141.
As long as the trend line resistance remains unbroken, there is a strong likelihood that the downside move will continue, with potential targets at 1.2700, followed by 1.2590. These levels will be closely monitored by traders to assess the pair’s potential for further declines.
Conversely, a breakout above the trend line resistance would indicate that the downward move from 1.3141 has already concluded, with 1.2762 serving as the low point. In such a scenario, the GBPUSD could see another upward movement, potentially targeting the previous high at 1.3141.
In conclusion, the GBPUSD remains in a downtrend, as evidenced by its position below the falling trend line on the 4-hour chart. The downside move is expected to persist, with targets at 1.2700 and 1.2590. Nevertheless, a breakout above the trend line resistance could signal a shift in sentiment, potentially leading to a rise towards the previous high at 1.3141. As always, traders are advised to exercise caution and conduct thorough analysis before making any trading decisions in the ever-changing forex market.
