FX.co ★ GBPUSD, H4 | Potential bullish reversal?

The GBP/USD chart shows bullish momentum, indicating an upward price trend. This is supported by the price being above the bullish Ichimoku cloud, suggesting positive sentiment and potential for further upward movement.

In the short term, there is a possibility of price retracing towards the first support level at 1.2588, which coincides with the 50% Fibonacci retracement level and represents an area of overlap support. The second support level at 1.2543 provides additional reinforcement.

On the upside, the first resistance level at 1.2676 acts as a point of pullback resistance, potentially causing selling pressure. The second resistance level at 1.2738, corresponding to the 100% Fibonacci projection, serves as an important potential resistance level.