GBPUSD has broken above the falling trend line on the 4-hour chart.
With this breakout, there is a potential for further upward movement in the pair, with the next target being the 1.2817 resistance level. A decisive breakout above this level would confirm that the previous downside move from 1.3141 has completed at 1.2615, potentially opening up the possibility for a rise towards the 1.3000 area.
However, as long as the 1.2817 resistance level holds, there is a possibility that the price action from 1.2619 could be consolidation within the overall downtrend. In such a scenario, a further decline towards the 1.2500 area is still possible.
Traders should closely monitor the price action and the behavior around the resistance and support levels mentioned for potential breakout or reversal signals.
To summarize, the analysis suggests that GBPUSD has broken above the falling trend line and could potentially move towards the 1.2817 resistance level. A break above this level would suggest a potential reversal and could lead to a rise towards the 1.3000 area. However, if the resistance holds, further consolidation or a potential decline towards 1.2500 could be expected. Traders should remain attentive and adapt their strategies accordingly.
