GBPUSD Bounces at Key Support: The GBP/USD price found support at the critical level of 1.2580, suggesting a temporary halt to the recent decline. This bounce hints at some potential bullish pressure.
Key Levels to Watch:
- Support: 1.2540 (important support zone)
- Resistance: 1.2700 (key resistance, break above negates downtrend)
Double Top Pattern Retest: The price is currently approaching a retest of the broken neckline of the double top pattern. A confirmed break below this level would solidify the bearish bias.
Indicators:
- EMA50: The 50-day EMA is still acting as resistance, adding weight to the potential continuation of the downtrend.
Targets:
- Downside: 1.2480 (initial target if support breaks)
- Upside: 1.2800 (potential target if resistance breaks)
Trend Confirmation:
- Downside Confirmation: Continued trading below 1.2700 is necessary for the downtrend to remain dominant.
- Upside Reversal: A breach above 1.2700 would signal a potential reversal and a return to the main bullish trend.
Trading Range:
- Support: 1.2540
- Resistance: 1.2700
Trend Forecast:
- Short-Term: Bearish bias (due to retest of double top pattern)
- Overall: Depends on the break of 1.2700 (downtrend confirmation below, bullish reversal above)