Cable is struggling to find a new direction after breaking a key resistance level.
Which way will GBP/USD go?
Check out this 4-hour chart!
GBP/USD: 4-hour
GBP/USD 4-hour Forex Chart by TradingView
Cable has had a good couple of weeks, rising from its 1.1820 March lows to trade at its current 1.2490 levels.
In fact, GBP/USD’s uptrend has taken the pair past the 1.2450 resistance that led to 600-pip downswings back in December and in early 2023.
Now that GBP/USD has passed the resistance, is it ready to make new 2023 highs?April’s range is giving “not so fast” vibes.
Watch the 1.2525 short-term range resistance closely to see if it would hold for another day.
A rejection at the level opens GBP to a move back to the 1.2425 mid-range zone or the 1.2350 range support level near the 4-hour chart’s 200 SMA. We could even see GBP/USD return to its multi-month range!
But what if GBP/USD breaks above April’s range resistance?
A clear break above the range could push GBP/USD back to the 1.2600 or 1.2650 previous inflection points.
Whichever direction you choose to trade, make sure to have trading plans ready and practice your best risk management moves!