GBP/USD has managed to break above strong resistance line at 1.26228. That level stopped the price twice. The first time was on April 30 and the second time was on April 14.
Since the price is above the key resistance level, we should look for bullish price action signals.
We have a bearish Pinbar that does not give too much confidence in the bearish scenario. GBP/USD could pull back to 1.26228 and form a bullish price action signal.
From there, the price could move further up to $1.27495 and later on up to $1.28463. Both levels are confluence level where the horizontal resistance and trend line are crossing.
The strongest confluence level is at $1.28463 where the daily trend line and H4 uptrend line crosses with horizontal resistance. This could be the area where the price will find sellers, opening selling opportunities.
Trading recommendations:
At this moment it is good to wait for a pullback and then enter on bullish signal at $1.26228. Stop loss would be at $1.25700 and take profit at $1.27495. The second profit target would be around $1.28300 - $1.28463.
When the price reaches the area of $1.28300 - $1.28463, we should look for a bearish price action signal to enter the market. Stop loss would be at $1.28750 with take profit at $1.27500 - $1.27700. The second profit target is at $1.26743.
