GBP/USD: Breaking Fibonacci Level to Find New Highs

5 days agoThe GBP/USD chart on the 4-hour time frame shows a positive recovery trend after reaching a low at 1.30353. The pair has broken above the 34 EMA and is heading towards the 89 EMA, suggesting that the uptrend could continue if it can solidly overcome these resistance levels.

The current price is just below the 0.618 level (1.31431), a strong resistance level. If the pair can overcome this level, the next target could be the 1.32097 level, which is an area that has seen strong resistance previously on the chart.

On the other hand, if the 0.618 level fails to be broken, the next support level could be the 0.5 Fibonacci level at 1.31225. A move below this level could lead to a retest of the recent support at 1.30353, increasing the risk of a fresh downtrend.