GBP/USD Ready to Break Out? 4H Chart Buy Strategy!

Hey traders, here’s the scoop on GBP/USD:

✅ Entry: We’re looking at a potential buy setup. The price is currently consolidating around the 4-hour support level at approximately 1.2712, just below the 21 EMA (yellow line at 1.2713). A strong break above this level, especially if it closes above the 21 EMA, could signal a potential move higher. Look for a close above this area to confirm a buy signal.

❌ Stop Loss: To manage risk, place a stop loss just below the support level at around 1.2688, ensuring we're out if the breakout doesn't hold.

🎯 Target 1: The first profit target can be set near the next resistance level at 1.2738, offering a reasonable risk-reward from our entry point.

🎯 Target 2: If the momentum remains strong, consider extending the take profit to the upper resistance at 1.2763, following the trend's strength and overall market sentiment.

Monitor price action closely near these critical levels for any signs of reversal, and as always, adjust your strategy based on real-time market conditions.