GBP/USD Rolling Over at Resistance - Where Next?

Chart Analysis:

GBP/USD is approaching the critical 1.2500 resistance level, a threshold that could determine the next directional move for the pair.

1️⃣ Resistance at 1.2500:

The horizontal level at 1.2500 has acted as a significant barrier, capping recent upward momentum.
A decisive break above this level would pave the way for further gains, potentially targeting the 1.2600 area or beyond.

2️⃣ Moving Averages:

50-day SMA (blue): Positioned at 1.2525, aligning closely with the resistance zone and reinforcing its importance.
200-day SMA (red): At 1.2791, remains above current price levels, indicating that the longer-term trend still favors the bears.

3️⃣ Momentum Indicators:

RSI: At 51.49, showing neutral momentum but with room for further upside before reaching overbought territory.
MACD: Remains below zero but is trending higher, suggesting improving bullish momentum.

What to Watch:

A sustained breakout above 1.2500 and the 50-day SMA could signal the start of a bullish reversal.

Failure to clear this zone may result in a pullback, with immediate support at 1.2400 and further downside toward 1.2300.

GBP/USD remains at a pivotal juncture, with the 1.2500 level acting as a key hurdle that bulls must overcome to establish a broader recovery.

-MW