The Sterling is struggling to find a new direction after breaking the key resistance level.
What direction will the GBP/USD go?
Check out this 4-hour chart!
GBP/USD 4-hour chart by TradingView
Sterling has had a good couple of weeks, rising from March lows of 1.1820 to trade at current 1.2490 levels.
In fact, the GBPUSD pair’s uptrend has surpassed the 1.2450 resistance level that led to a 600 pips decline in December and early 2023.
Now that GBP/USD has broken through the resistance, is it ready to make new highs in 2023?
The April collection gives off “not so fast” vibes.
Watch the short term resistance 1.2525 closely to see if it holds for another day.
Rejection at the level opens the pound to return to 1.2425 medium term area or 1.2350 range support level near the 200 SMA on the 4 hours chart. We could even see GBPUSD back in its multi-month range!
But what if GBP/USD breaks above the April range resistance?
A clear break above the range could push GBP/USD back to 1.2600 or 1.2650 previous inflection point.
Whichever direction you choose to trade, make sure you have trading plans ready and practice your best risk management moves!