For several days GBP/USD is in an upward trend above the blue line seen on the H1 chart. Recently, after fluctuating up the price again came into contact with the line. In this situation, two scenarios are possible:
- Breaking the trend line and decrease. The forecasted range is about 1.2340 (brown line).
- Rebound from trend line, another swing up and attack on local peak from last night at 1.2556. This scenario is supported by the fact that in addition to the short-term upward trend line, there is a green line at 1.247, which in the past has been a support and resistance. In addition, during the last few hours, the dynamics of decline has decreased. This is evident from the fact that long black bodies as they approached the blue line gave way to pinbars and very small candles.
It predicts that reflection from the line is more likely than breaking it. One way to use this situation is to buy a call option. Options are available on easyMarkets platform.