The GBP/USD pair is trading near the **1.3000** psychological level, showing signs of consolidation after a strong bullish move. The chart suggests a potential reversal as price approaches a key resistance zone, with an apparent liquidity grab at the recent high.
The highlighted area around **1.2946 - 1.2921** represents a significant **H4 demand zone**, where price could retrace before continuing its next move. A break below this zone would indicate a deeper correction, with potential downside targets towards **1.2870** (OA level).
**Key Considerations:**
- A sustained break above **1.3000** could invalidate the bearish setup, leading to further upside momentum.
- A rejection at this level, combined with bearish price action, could confirm a short opportunity with a target towards the demand zone and lower support areas.
**Conclusion:** Traders should monitor price action around the resistance level and confirmation of a bearish reversal before committing to short positions. If bullish momentum persists, a breakout could open the door for further gains.
The highlighted area around **1.2946 - 1.2921** represents a significant **H4 demand zone**, where price could retrace before continuing its next move. A break below this zone would indicate a deeper correction, with potential downside targets towards **1.2870** (OA level).
**Key Considerations:**
- A sustained break above **1.3000** could invalidate the bearish setup, leading to further upside momentum.
- A rejection at this level, combined with bearish price action, could confirm a short opportunity with a target towards the demand zone and lower support areas.
**Conclusion:** Traders should monitor price action around the resistance level and confirmation of a bearish reversal before committing to short positions. If bullish momentum persists, a breakout could open the door for further gains.
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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.