GBP/USD Bullish Recovery – Key Levels for a Breakout & Reversal

Hello, buddies.
Given the decline, the price has now established a solid floor, and we expect it to continue growing; nevertheless, we must enter a price correction, therefore we have selected the best possible support point for you...

We will wait for a new ceiling to be registered before proceeding with the purchase transaction, but with careful risk and capital management.

*Trade safely with us*
Overview:
The GBP/USD 4-hour chart shows a potential bullish reversal after a significant downtrend. Price has formed a double-bottom pattern and has broken out of a descending trendline, signaling a shift in momentum. The chart highlights key areas of support and resistance that traders should watch for confirmation of a sustained move higher.

Key Technical Analysis:
Fake Breakout: A false breakdown below the trendline in August led to a sharp recovery, confirming a liquidity grab before a bullish continuation.
Trendline Breakout: The price has successfully broken the descending trendline (orange line), indicating potential bullish strength.
Support Zones:
Blue Zone (~1.2450 - 1.2500): A strong demand area where buyers may re-enter.
Purple Zone (~1.2120 - 1.2200): A deeper support level, acting as the last line of defense for bulls.
Fibonacci Levels & Targets:
1.2785: First key resistance level.
1.3022: A major resistance and potential breakout zone.
1.3242: Final bullish target if momentum continues.
Trade Plan:
📌 Buy Limit Entry: Around 1.2450-1.2500 (if price retests the support zone).
🎯 Target 1: 1.2785
🎯 Target 2: 1.3022
🎯 Target 3: 1.3242
🛑 Stop Loss: Below 1.2400 to minimize risk.

Conclusion:
The GBP/USD pair is showing signs of a potential bullish reversal. A short-term pullback to the blue support zone could provide an optimal buying opportunity before a strong upward move. However, a break below 1.2400 could invalidate this bullish setup, leading to a deeper correction.

🚀 Bullish Bias if Key Support Holds! 🚀