FX.co ★ GBPUSD, H4 | Reverse from 1st resistance ?

The GBP/USD chart currently displays a bearish momentum, indicating the potential for a bearish reaction off the 1st resistance level, followed by a decline towards the 1st support level.

The 1st support level at 1.2396 is a multi-swing low support level and has previously acted as a reliable level of support, adding further importance to this level.

In the event that the price drops below the 1st support level, the 2nd support level at 1.2342, which is also an overlap support level, may act as the next level of support.

On the resistance side, the 1st resistance level at 1.2509 is an overlap resistance level and also coincides with a 50% Fibonacci retracement level, making it a robust level of resistance.

If the price manages to break through the 1st resistance level, it may continue its bullish movement towards the 2nd resistance level at 1.2581. This level is a swing high resistance level and has acted as a strong level of resistance in the past.