GBP/USD is trading upwards today and the price tested the level of 1.3040. Anyway, be careful when buying due to potential downward continuation on the larger scale.
According to the H4 time – frame, I found that there is breakout of the bearish flag and rejection of the medium Keltner EMA, which is sign that sellers are still present. These are reference points:
Upward:
Friday's high – 1.3048
Keltner upper band – 1.3076
Downward:
Friday's low – 1.2990
Previous week low – 1.2967
Our advice is to watch for potential selling opportunities with the targets at 1.2969 and 1.2880. To confirm potential upward scenario, we would like to see supportive price action above the 1.3050.