Recent Breakthrough GBP/USD has successfully broken above the key resistance level at 1.2839. This breakout has allowed the pair to extend its upward move from the recent low of 1.2664, reaching as high as 1.2872.
What This Means for Bulls The recent price action suggests that the upward trend might continue. Here’s what traders should watch for:
- Current Situation: The pair has shown strong momentum, breaking through a key resistance level.
- Next Target: 1.2942 This is the level bulls will be eyeing as the next significant resistance.
- Short-term Outlook: While we might see a brief consolidation period, the overall trend appears bullish.
Key Support Levels It’s important to be aware of potential support levels in case of a pullback:
- Initial Support: 1.2810 This level could provide support if we see a short-term dip.
- Secondary Support: 1.2740 A break below 1.2810 could see the pair test this lower support level.
Trading Implications
- For Bulls:
- Look for opportunities to enter long positions on minor pullbacks.
- Consider setting targets around the 1.2942 resistance level.
- For Bears:
- The current trend suggests caution is needed for short positions.
- Watch for any signs of weakness below the 1.2810 support level.
Key Takeaways
- The break above 1.2839 is a significant bullish signal.
- 1.2942 is the next major target for bulls.
- Keep an eye on 1.2810 as a key short-term support level.
- The overall trend remains bullish as long as the price stays above 1.2740.
Remember, forex markets can change quickly. Always use proper risk management techniques and stay informed about economic events that could impact currency movements.
We’ll continue to monitor GBP/USD and provide updates as the situation evolves. Happy trading!