🚨 GBP/USD at a Critical Zone – Breakout or Reversal?
Let’s break down the price action from a technical perspective 👇
📊 Daily Technical Analysis – GBP/USD (April 2025)
The GBP/USD pair is trading near a key inflection point, with price action hinting at a potential breakout — or a deeper correction.
📈 Trend Overview:
The broader trend remains bullish, following a steady rally from the 1.2300 area back in February. The pair has been forming higher highs and higher lows, indicating strong underlying demand.
However, we’re now seeing signs of bullish exhaustion as the price struggles near the 1.2850 – 1.2900 resistance zone — an area that previously acted as a strong supply level.
🧱 Key Resistance Levels:
1.2850 – 1.2900: Major resistance zone; a daily close above this level would likely accelerate bullish momentum.
1.3000: Psychological round number and the next natural target.
1.3140: Historical swing high from mid-2023, could serve as the next upside objective.
🛡️ Key Support Levels:
1.2680: Previous higher low and potential first line of defense.
1.2520: Strong structural support — a break below this zone may shift the medium-term outlook to neutral or even bearish.
1.2300: February’s key low and the base of the current trend.
📐 Technical Structures:
Price appears to be forming an ascending triangle — a classic bullish continuation pattern — with flat resistance at 1.2850 and rising higher lows from below. This supports the idea of an impending breakout if bulls regain control.
Additionally, the pair is moving within a rising price channel, offering clean structure for both trend-following and breakout traders.
🧭 Potential Scenarios:
✅ Bullish Breakout:
A confirmed close above 1.2900 would likely open the door toward 1.3000, followed by 1.3140. This scenario aligns with the current market structure, assuming continued weakness in the USD or sustained risk appetite.
❌ Bearish Rejection:
Failure to break the resistance zone, especially with bearish reversal candles, could trigger a drop toward 1.2680, and possibly 1.2520. A daily close below 1.2520 would be a strong technical warning for bulls.
📌 Conclusion:
GBP/USD is sitting at a technically significant level. The prevailing trend favors the bulls, but the outcome at 1.2850–1.2900 will be decisive. Watch price action closely for confirmation — breakout or rejection, the next move could be sharp.
💬 What’s your take on this setup? Do you see a breakout or a reversal ahead? Drop your thoughts in the comments 👇
Let’s break down the price action from a technical perspective 👇
📊 Daily Technical Analysis – GBP/USD (April 2025)
The GBP/USD pair is trading near a key inflection point, with price action hinting at a potential breakout — or a deeper correction.
📈 Trend Overview:
The broader trend remains bullish, following a steady rally from the 1.2300 area back in February. The pair has been forming higher highs and higher lows, indicating strong underlying demand.
However, we’re now seeing signs of bullish exhaustion as the price struggles near the 1.2850 – 1.2900 resistance zone — an area that previously acted as a strong supply level.
🧱 Key Resistance Levels:
1.2850 – 1.2900: Major resistance zone; a daily close above this level would likely accelerate bullish momentum.
1.3000: Psychological round number and the next natural target.
1.3140: Historical swing high from mid-2023, could serve as the next upside objective.
🛡️ Key Support Levels:
1.2680: Previous higher low and potential first line of defense.
1.2520: Strong structural support — a break below this zone may shift the medium-term outlook to neutral or even bearish.
1.2300: February’s key low and the base of the current trend.
📐 Technical Structures:
Price appears to be forming an ascending triangle — a classic bullish continuation pattern — with flat resistance at 1.2850 and rising higher lows from below. This supports the idea of an impending breakout if bulls regain control.
Additionally, the pair is moving within a rising price channel, offering clean structure for both trend-following and breakout traders.
🧭 Potential Scenarios:
✅ Bullish Breakout:
A confirmed close above 1.2900 would likely open the door toward 1.3000, followed by 1.3140. This scenario aligns with the current market structure, assuming continued weakness in the USD or sustained risk appetite.
❌ Bearish Rejection:
Failure to break the resistance zone, especially with bearish reversal candles, could trigger a drop toward 1.2680, and possibly 1.2520. A daily close below 1.2520 would be a strong technical warning for bulls.
📌 Conclusion:
GBP/USD is sitting at a technically significant level. The prevailing trend favors the bulls, but the outcome at 1.2850–1.2900 will be decisive. Watch price action closely for confirmation — breakout or rejection, the next move could be sharp.
💬 What’s your take on this setup? Do you see a breakout or a reversal ahead? Drop your thoughts in the comments 👇
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.