TECHNICAL ANALYSIS
On the daily chart, it's evident that the GBPUSD pair has recently broken through a significant trendline and the resistance level around 1.23, signaling a shift towards a more bullish bias. However, the rapid upward movement has caused the price to deviate significantly from the blue 8 moving average. In such cases, it's common to observe either a pullback towards the moving average or a period of consolidation before the uptrend continues. On the 4-hour chart, there is a strong support zone around the previous resistance, which has now turned into support. Within this zone, you'll find the 38.2% Fibonacci retracement level and the red 21 moving average, providing a confluence of support factors. It's likely that buyers will step in at this level, with a well-defined risk level just below it, as they position themselves for another upward move towards the 1.25 handle. Conversely, sellers will be looking for a break below this support zone to strengthen their bearish positions and target the previous lows. Examining the 1-hour chart, you'll notice an additional upward trendline, which adds further confluence to the support zone around the 1.23 handle. If there's a bounce from this level, buyers should maintain their conviction and aim for new higher highs. However, if the price breaks lower, sellers are likely to regain control, pushing the GBPUSD pair back towards the lower price levels.
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