FX.co ★ GBPUSD H4 | Falling toward support level?

The GBP/USD chart currently shows bullish momentum but might experience a short-term dip towards the 1st support at 1.2423, expected to attract buyers. The 2nd support at 1.2301 is another pullback support, adding to its significance. On the resistance side, the 1st resistance at 1.2499 aligns with the 127.20% Fibonacci Extension level, suggesting potential selling pressure. The 2nd resistance at 1.2580 is an overlap resistance, coinciding with the 161.80% Fibonacci Extension level, indicating a point of increased selling interest during a potential rise. Overall, a short-term drop towards the 1st support may precede a bounce towards the 1st resistance.