GBPUSD - TREND REVERSAL?

Symbol - GBPUSD

GBPUSD is attempting to capitalize on a potential trend reversal amid the ongoing correction of the U.S. dollar. The price is currently testing a key resistance level within a consolidation phase, indicating a possible breakout. On the daily timeframe, the price remains above the previously breached trendline, with the effort to surpass the resistance providing insights into market sentiment. A continued correction in the dollar could benefit the British pound, particularly if the U.S. Dollar Index breaks below 107 and moves toward the 106-105 range.

From a technical perspective, attention is centered on the 1.257 level, which acts as a crucial resistance threshold. A sustained break and consolidation above this level may trigger a rally.

Resistance levels: 1.2575, 1.2718
Support levels: 1.250, 1.2377

I do not rule out the possibility of a retest of the 1.250 support level to accumulate liquidity before further upward movement. The dollar is expected to continue its correction following remarks from Trump and Powell regarding potential rate cuts.