GBP/USD at the Crossroads: Rejection or Breakout? GBP/USD
Price just pushed up into a key resistance zone around 1.2775, tapping into that area but showing some hesitation. This level aligns with a previous high and a major trendline rejection, which could signal a potential pullback or even a reversal if sellers step in heavy. The 200-day EMA is sitting slightly above at 1.2784, so we gotta watch how price reacts—either it breaks and holds above for continuation, or we get a clean rejection that sets up a short opportunity.
Bearish Setup: If price fails to break and hold above 1.2780, I’ll be looking to sell, targeting 1.2716 first, then potentially down to 1.2505 if momentum kicks in. Confirmation would come with a strong bearish candle or a break back below the previous structure.
Bullish Setup: If price breaks and holds above 1.2785 with momentum, then we could be headed for 1.3016 and beyond. I’d be looking for a clean breakout with a retest before jumping in long.
🔥 My Bias? Right now, I’m leaning bearish unless buyers step in aggressively and break that resistance clean. If I see a strong rejection, I’m jumping in for the short ride down.
