''GBP/USD Bullish Setup; Key Levels & Targets Ahead'' Technical Analysis of GBP/USD (4H Timeframe)
The GBP/USD currency pair is currently exhibiting bullish momentum, trading at 1.26307, with a marginal decline of -0.11%. The price action has demonstrated a steady uptrend, supported by key technical levels and a well-defined trendline.
Key Observations:
1. Support Zone Validation
- A significant support area has been established around 1.25741, acting as a key level for further upward movement. This level aligns with previous resistance-turned-support, reinforcing its structural importance in the ongoing bullish trend.
2. Ascending Trendline Confluence
- The market is respecting an upward-sloping trendline, which continues to act as dynamic support. Any retracement toward this level could present buying opportunities in line with the prevailing trend.
3. Potential Demand Zone (Point of Interest - Buying Area)
- A well-defined demand zone is situated around 1.25187, marking a potential area where institutional buyers may step in to support the price. If tested, this region could trigger another bullish leg.
4. Target Areas & Resistance Levels
- The primary resistance zone is identified between 1.27159 and 1.28031, marking the next potential price objective. These levels coincide with prior liquidity zones, where sellers may emerge to challenge further upside movement.
5. Gap Analysis & Market Structure
- A previously noted gap in price action has been filled, confirming the market’s efficiency in correcting inefficiencies. This adds credibility to the continuation of the upward trend.
Outlook & Trading Bias:
- The current structure remains bullish, with price action respecting both horizontal and dynamic support levels.
- A break and retest of 1.25741 could offer an optimal entry point for buyers, targeting 1.27159 - 1.28031.
- A violation of the trendline and 1.25187 support would shift the bias toward a potential corrective pullback, warranting caution among long-position traders.
Conclusion:
The GBP/USD pair remains poised for further gains, provided key support zones hold. Traders should monitor price reactions at the 1.25741 and 1.25187 levels for confirmation of bullish continuation or potential reversal signals. Don't forget to hit the like button & share your ideas in comments.
