On the weekly chart of GBP/USD, after bouncing off the local support level located at 1.22992 according to my analysis, the price confidently moved to the upside, resulting in the formation of a full bullish candle that managed to engulf the previous weekly range, closing near the mirror resistance level situated at 1.25180. I consider that the current corrective northward retracement for this week is completed and anticipate that sellers will attempt to resume the southward movement next week. In this case, I plan to focus on holding the support level located at 1.22992. Near this support level, two scenarios may unfold. The first scenario involves the price consolidating below this level and further southward movement. If this scenario plays out, I will expect the price to move towards the support level at 1.21870. Upon the price consolidating below this support level, I will anticipate further southward movement, down to the support level at 1.20956 or to the support level at 1.20371. Near these support levels, I will await the formation of a trading setup to help determine the next trading direction. Of course, I acknowledge that during the price movement towards the designated distant southern targets, northward retracements may form, which I plan to use to search for bearish signals from the nearest resistance levels, in anticipation of the price resuming its downward movement within the emerging bearish trend. An alternative scenario for the price movement when approaching the support level at 1.22992 would be a plan involving the formation of a reversal candle and a resumption of the uptrend. If this plan unfolds, I will expect the price to return to the resistance level located at 1.25180. Near this resistance level, I will continue to search for bearish signals, expecting the northward price movement to resume. There is, of course, a possibility of working towards more distant northern targets, but I am not considering them at the moment as I do not see prospects for their quick realization. In short, next week, I locally anticipate that the price may move towards the nearest support levels, and further actions will depend on the market situation.
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