Analysis for GBP/USD (4-Hour Chart)The GBP/USD pair is showing significant price movements on the 4-hour chart, providing potential opportunities for both buyers and sellers. Here’s a breakdown of the key levels and insights:
Key Observations:
Support Zone:
The price has recently bounced from a critical support level at 1.2400, indicating strong buying pressure at this zone.
This level may act as a base for a potential bullish recovery.
Resistance Levels:
The first major resistance is observed around 1.2541.
A stronger resistance zone lies at 1.2605, which could act as a barrier for further upward momentum.
Trend Analysis:
The pair is currently in a short-term bearish trend, as seen by the recent downward movement.
However, the bounce from the support level and the green indicator showing potential long positions may suggest a possible reversal or retracement.
Potential Scenarios:
Bullish Case: If the price breaks above 1.2541, we might see further upside toward the next resistance at 1.2605.
Bearish Case: Failure to sustain above the support level at 1.2400 could lead to another leg downward, potentially targeting 1.2350.
Trading Strategy:
Long Positions:
Consider entering around the support level (1.2400) with a target of 1.2541 and a stop-loss below 1.2370.
Short Positions:
Look for opportunities near 1.2541 or 1.2605 if rejection signals appear, with a target back to the support zone.
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