BluetonaFX - GBPUSD Pullback To Previous Resistance Break

Hi Traders!

GBPUSD looks to be on a pullback after breaking and closing above the previous resistance, and there are opportunities for short entries to take advantage of the potential pullback to target levels near the previous resistance break.

Price Action 📊

After the initial break and close above the previous resistance at 1.24286, the market rallied to find new resistance near the swing high resistance level near 1.27466. If the market holds here, the pattern will become a double-top pattern, which is bearish, so this will also support our view. Our plan here is to sell rallies and look for exits near the previous resistance break at 1.24286 and the 20 EMA.

Fundamental Analysis 📰

Later today, we have BoE Governor Bailey speaking; therefore, we must be wary of his speech, as what he says may be potentially volatile for GBP pairs.

Support 📉

1.26068: PREVIOUS DAY'S LOW
1.24286: PREVIOUS RESISTANCE BREAK

Resistance 📈

1.27466: SWING HIGH RESISTANCE

Risk ⚠️
No more than 2% of your capital.

Reward 💰
At least 4% of your capital.

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Trade safely and responsibly.

BluetonaFX