GBPUSD Breakout: What's Next?

The GBPUSD pair has made a significant move on the 4-hour chart, breaking above the top of the falling price channel. This breakout could be the start of a new rally, and we're likely to see the pair test the 1.2888 resistance level in the coming days.

However, it's essential to keep things in perspective. As long as the 1.2888 resistance holds, the current price action could be just a consolidation phase within the larger downtrend that started at 1.3044. In other words, the pair might be taking a breather before continuing its decline.

If the pair does start to fall, the initial support level to watch is 1.2806. A breakdown below this level could trigger a further decline to 1.2780, and eventually, the 1.2710 area.

But, if the GBPUSD pair can break through the 1.2888 resistance, it could be a sign that the downtrend has already come to an end. In this case, the next target would be the 1.2940 area.

So, what's next for GBPUSD? Will the pair continue its rally or fall back into the downtrend? Keep an eye on these key levels to find out!

by ForexInflux