The presented chart is a daily analysis of the GBP/USD currency pair covering its long-term price movement from mid-2020 to early 2025. The chart includes trend lines, Fib retracement levels, and multiple horizontal support and resistance lines that form the structure. Understand the market structure and key price levels. From a structural perspective, the GBP/USD pair has been experiencing a significant downtrend since bottoming near 1.0350 in late 2022, followed by a broad recovery phase. This area represents the lowest price on the chart and also coincides with the 100% Fib retracement level derived from the 401 low. Since reaching this threshold, the price has been moving within a well-defined ascending channel with two orange trend lines connecting successive rising lows and highs. This upward trend indicates that the market is undergoing a rapid structural change due to the continued price increase over the past year. Within this bullish channel, the price has shown some significant reactions to the horizontal levels. In particular, the 1.2400 area acted as an important central area, providing support and resistance at different stages of the trend. The price fluctuations between 1.2400 and 1.2700 show signs of consolidation, reflecting the market's hesitation before resuming the currency pair's uptrend. The Fib retracement levels give these areas further importance. The 50.0% retracement level is located near the 1.2400 mark, confirming its role as a technically important level. Failure to hold this level would trigger a long-term consolidation, and a successful breakout would send the price further up. The GBP/USD pair is currently trading at 1.3400, approaching the upper resistance of the ascending channel. This area also corresponds to the 23.6% Fib retracement level, which includes this area as a potential supply zone. The price structure suggests that the uptrend will continue. However, traders should be wary of potential resistance in this area, especially since it has previously acted as a reversal point. If this resistance is eventually breached, the next level of interest will be the previous swing high near 1.3650, followed by the full correction level at 1.4200, which would signal the start of a downtrend.
On the downside, there is clear support at several horizontal levels. The 1.2970 area corresponds to the 38.2% Fib level and represents the recent breakout zone. If the price were to bounce back from the current high, this level would likely act as the first major support line. Just below that, the 1.2400-1.2500 range should again prove to be a key demand zone. If downward pressure strengthens and the price falls below this area, it would indicate a breakdown in the high-low structure, which could signal a trend reversal. The 1.2100 level near the 61.8% Fib retracement level is another key support level to test in this scenario. The orange and red trends on the chart show the current market structure at various levels. The crossover of the orange upper band with the horizontal resistance line near 1.3400 suggests that bullish momentum may dry up in the short term until the breakout is confirmed. In contrast, the lower boundary of the ascending channel near 1.2500 acts as a structural bottom. The price has tested and held this trendline multiple times, highlighting its reliability as a support line. Volume trends indicate growing interest near the key breakout points, especially during the rise from 1.2100 to 1.2700 and at the current high of 1.2970. These volume trends are consistent with institutional accumulation and decentralization of participation. Increasing volume during an uptrend indicates that there is deep-seated demand, supporting the bullish structure. Indicators such as the RSI and MACD displayed below the chart reflect overbought conditions but still support bullish momentum. The RSI is approaching the 70 level, indicating that the price is approaching the overbought zone. Meanwhile, the MACD line is showing a positive reversal and extension to the upside. These indicators suggest that while the current trend may continue in the short term, a correction or consolidation at key resistance areas is to be expected. In short, the GBP/USD pair is continuing to move higher and is trading within an ascending channel with clear support and resistance levels. Key price levels include immediate resistance at 1.3400, followed by 1.3650, and if the upward structure continues, the price could eventually reach 1.4200. Conversely, the support levels of 1.2970, 1.2500, and 1.2100 will be important to maintain the overall uptrend. As long as the price remains within the ascending channel and above 1.2500, the uptrend is likely to continue, and a new all-time high is expected in the coming weeks.
