GBPUSD Trading Idea

Let’s talk about GBPUSD. The market reached a very important resistance zone formed by 1300.00 level and the downtrend line. We can see that the price bounced from this resistance. A strong bearish candle confirms a price reversal. The same goes about RSI and MACD histogram. DMI shows that bulls are not strong now and they can’t push the market above the resistance zone. It will be logical if the market continues downward movement to the local support zones at 1.27000 and probably 1.25000 levels. It will be the movement in the direction of the main downtrend on the daily timeframe.
For confirmation the upward movement and a trend reversal based on the daily chart, the price will have to break the resistance zone and move above 1.30000 level. This breakout can be used for opening long term buy trades.

If we talk about the lower timeframe, for example, the 4H - we have an uptrend movement. For confirmation a trend reversal the price has to break local uptrend lines. After that, we will get confirmations that the market is going to move lower.

So, as result:
short term/medium term - sell opportunity based on the reversal signal from the resistance zone
long term - buy opportunity based on the breakout signal above the resistance zone.

Comment:

It looks like the market is going to become bullish. The downtrend line was broken. The price moved above 1.30000 strong resistance level.
Buy opportunities can be based on reversal signals in the direction of a possible uptrend. For this the price will need to correct the upward movement from 1.25000 and make a new swing low higher than the previous one.