After a false breakout of the Ascending Trendline, GBP/USD continued its bullish move and is now at a Resistance Zone at 1.3695-1.3710, with its RSI at extremely overbought levels on the 1H Chart. Here are the two possible scenarios:
Long:
-If price consolidates around this Resistance Zone and breaks it to the upside, wait for a retest and look for a Long entry on a lower time frame;
-Possible first target around 1.3775.
Short:
-If we see a good rejection off the Resistance Zone or if price consolidates and makes a bearish confirmation (impulsive bearish candle or big wick rejecting the Resistance), we might be looking for a move to the downside at least until price touches the Ascending Trendline.
Use stop-losses, a good risk management and remember this is not financial advice.
Long:
-If price consolidates around this Resistance Zone and breaks it to the upside, wait for a retest and look for a Long entry on a lower time frame;
-Possible first target around 1.3775.
Short:
-If we see a good rejection off the Resistance Zone or if price consolidates and makes a bearish confirmation (impulsive bearish candle or big wick rejecting the Resistance), we might be looking for a move to the downside at least until price touches the Ascending Trendline.
Use stop-losses, a good risk management and remember this is not financial advice.