GBP/USD (British Pound/US Dollar), a potential bearish reversal scenario is outlined as follows:
Resistance Levels:
The 1st resistance level at 1.2580 is identified as "Pullback resistance," indicating a significant level where selling pressure may emerge after a price retracement. This level suggests that previous buyers might encounter resistance from sellers looking to capitalize on the recent upward movement.
The 2nd resistance level at 1.2656 is noted as "An Overlap resistance," suggesting a convergence of resistance factors at this level. It indicates a historical level where selling pressure has been observed and may act as a strong barrier to further upward movement.
Support Levels:
The 1st support level at 1.2530 is highlighted as "Multi-swing low support," indicating a level where buying interest could emerge due to the presence of multiple swing lows.
The 2nd support level at 1.2505 is described as "An Overlap support," suggesting additional reinforcement of support in this area