For GBP/USD (British Pound/US Dollar), a potential bullish bounce scenario is outlined as follows:
Support Levels:
The 1st support level at 1.2580 is identified as "An Overlap support," indicating a significant level where buying interest could emerge. This level may act as a support zone, potentially halting the downward movement of the price.
The 2nd support level at 1.2507 is also described as "An Overlap support," suggesting additional reinforcement of support in this area. Traders may anticipate increased buying activity around this level.
Resistance Levels:
The 1st resistance level at 1.2656 is recognized as "An Overlap resistance," implying a notable barrier where selling pressure may intensify. This level could pose a challenge for further upward movement.
The 2nd resistance level at 1.2691 is noted as "Swing high resistance," indicating a previous peak where sellers have historically been active. It represents a key level to watch for potential selling interest.