Chart of the day

GBPUSD from a technical standpoint, has shown resilience despite the recent decline. It is now testing a strong key upside resistance of 1.2400, indicating potential upward momentum. This resistance level is crucial in determining the GBPUSD direction in the medium-term. Breaking above this level could signal a reversal of the downtrend and a potential uptrend in the coming weeks. A rejection here or at 1.2500 can lead to a strong downside reversal.

I see this still as the extension of the short-term downside five waves and the fourth wave is finished now at this point. We need to see a clear confirmed break above 1.2500 in the coming days and weeks to support a complete upside reversal and extension higher.

Long trades could be opened upon a break above 1.2500. Short trades should be opened in the case of a reversal lower below 1.2350. The invalidation level of the possible downside fifth wave is 1.2500.