<p class=“MsoNormal“>On the daily GBPUSD chart below, we can
see that the price has finally reached the top of the range at the 1.24 handle.
This will be a key level for both buyers and sellers. The buyers will need to
break above the level with conviction to keep the rally going. </p><p class=“MsoNormal“>The sellers are likely to start
piling in here to target a fall towards the bottom of the range at 1.1839 and
beyond. Beware that if this was just a squeeze on dollar longs, the following
rally in the US Dollar will be aggressive.</p><p class=“MsoNormal“>GBPUSD Technical Analysis</p><p class=“MsoNormal“>On the 4 hour chart below, we can
see that we have a <a target=“_blank“ href=“https://www.forexlive.com/Education/chart-patterns-guide-20220125/“>rising
wedge</a> right at the top of the range. This is a reversal pattern and we can
also see that we have a big and long <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>divergence</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a>. The setup for the sellers looks
incredibly good now. </p><p class=“MsoNormal“>Generally, the target would be
the bottom of the pattern, which in this case comes at the 1.20 handle. So, the
sellers have a really high reward to risk ratio here. The buyers, on the other
hand, will need to break above the upper <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> and the top of the range to
invalidate the selling setup and extend the rally.</p><p class=“MsoNormal“>On the 1 hour chart below, we can
see that the buyers may lean on the 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level and the trendline before trying to break
above the top of the range. The sellers will want to wait for a break below the
trendline before piling in and extend the fall.</p>
see that the price has finally reached the top of the range at the 1.24 handle.
This will be a key level for both buyers and sellers. The buyers will need to
break above the level with conviction to keep the rally going. </p><p class=“MsoNormal“>The sellers are likely to start
piling in here to target a fall towards the bottom of the range at 1.1839 and
beyond. Beware that if this was just a squeeze on dollar longs, the following
rally in the US Dollar will be aggressive.</p><p class=“MsoNormal“>GBPUSD Technical Analysis</p><p class=“MsoNormal“>On the 4 hour chart below, we can
see that we have a <a target=“_blank“ href=“https://www.forexlive.com/Education/chart-patterns-guide-20220125/“>rising
wedge</a> right at the top of the range. This is a reversal pattern and we can
also see that we have a big and long <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>divergence</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a>. The setup for the sellers looks
incredibly good now. </p><p class=“MsoNormal“>Generally, the target would be
the bottom of the pattern, which in this case comes at the 1.20 handle. So, the
sellers have a really high reward to risk ratio here. The buyers, on the other
hand, will need to break above the upper <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> and the top of the range to
invalidate the selling setup and extend the rally.</p><p class=“MsoNormal“>On the 1 hour chart below, we can
see that the buyers may lean on the 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level and the trendline before trying to break
above the top of the range. The sellers will want to wait for a break below the
trendline before piling in and extend the fall.</p>
This article was written by ForexLive at www.forexlive.com.