GBPUSD was unable to break above the 1.2670 level strong resistance after the recent strong bounce from 1.1775
Only a confirmed break above 1.2670 will lead to an extension higher and a retest of 1.3350 to break above the falling channel and extend higher.
This short-term confirmed break below 1.2470 after the resistance rejection would lead to a bearish swing lower to 1.775 again, for which we give a little more weight than an upside break above 1.2670.
This could be a medium-term low-risk short trade, and we will not search for long trade entries at this point.
You can take the short trade upon a confirmed break below 1.2400 with the stop loss just above 1.2500 as we see a higher probability for this swing reversal lower to continue. By placing this trade your RR ratio is around 4. In the case, you are stopped you can reverse your trade to a long trade, especially in the case of a confirmed break above 1.2670. The first target is 1.1775 but it may go beyond that to 1.1400 and lower.
