GBP/USD on the Move – Will the Bulls Take Charge?OANDA:GBPUSD - 1Hr Chart
Current Price:1.27664
Executive Summary:
The price is currently trading within an ascending channel after finding support during the London session on Friday, Nov 22. A breakout above the 1.26953 level, now acting as strong support, suggests continued upward momentum toward the ultimate resistance at 1.29395, offering a potential profit of 171 pips.
Detailed Analysis:
After analysing the chart, we observed that the price found support during the London session on Friday, Nov 22, and has since been trading upward within an ascending channel. The resistance at 1.26953 was broken and now serves as a strong middle support or equilibrium. This level acts as a balancing point, where price often pauses, retests, or consolidates before continuing its trend. It works as a critical area of decision-making for traders, offering opportunities for price rebounds in an uptrend or potential breakdowns in case of bearish pressure. The price is expected to rise toward the ultimate resistance at 1.29395, as highlighted on the chart, with a potential profit of 171 pips.
Bearish Scenario:
In the bearish scenario, if significant selling pressure drives the price below the 1.26953 middle support, it could signal a potential shift in market sentiment. This middle support currently acts as a critical level, maintaining the upward momentum. A break below it may invalidate the bullish structure, leading to further declines. In such a case, the price is likely to target the next key level at the ultimate support of 1.24512. This level represents a strong foundational support where buyers might step in to stabilise the price and counteract the bearish momentum.
Key Levels to Watch:
• Middle Support: 1.26953 (Strong support and potential bounce level).
• Ultimate Resistance: 1.29395 (Target level for upward momentum).
• Ultimate Support: 1.24512 (Potential downside target if support breaks).
Thank you for taking the time to read this analysis. Wishing you the best in your trading journey! Remember to always follow proper risk management strategies to ensure long-term success in the markets. Good luck with your trades!
