GBP/USD Sell Setup | Resistance Rejection Toward Major Support 📉

GBP/USD is currently trading beneath a significant resistance zone after showing signs of slowing bullish momentum. Price has respected the ascending trendline, but it is now approaching a key supply area where sellers could become active. The current structure suggests that this region may decide the next directional move, making patience and confirmation essential before entering a trade.

The highlighted resistance zone around 1.3495–1.3505 remains the primary barrier for buyers. A rejection from this area could trigger fresh selling pressure and lead to a move back toward the nearest support zones. On the other hand, a strong breakout above resistance with sustained buying volume would invalidate the immediate bearish outlook.

🎯 Bearish Scenario:
If sellers defend the resistance zone and bearish confirmation appears through rejection candles or a break below short-term support, GBP/USD may begin a corrective decline.

Target 1: 1.3450
Target 2: 1.3425
Target 3: 1.3395 (main target area)

A move below 1.3425 would strengthen bearish momentum and increase the probability of reaching the final downside objective near the marked target zone.

📈 Bullish Scenario:
If buyers successfully break above 1.3505 and hold above the resistance area, the current bearish setup would lose validity.

Bullish Targets:
• 1.3525
• 1.3550
• 1.3580

A confirmed breakout supported by strong volume and higher highs could extend the uptrend toward new weekly highs.

🔍 Trading Perspective:
The market remains at a critical decision point between resistance and trend support. Smart traders should wait for confirmation instead of anticipating the breakout or rejection. The risk-to-reward ratio becomes more attractive once price clearly commits to either direction.

📍 Key Support Zones:
• 1.3450
• 1.3425
• 1.3395

📍 Key Resistance Zones:
• 1.3495–1.3505
• Above 1.3525 for bullish continuation

📝 Trade Plan:
• Wait for bearish confirmation inside the resistance zone before considering short positions.
• Place stop-loss above the resistance high or above the most recent swing high.
• Scale profits at each support level while protecting remaining positions by moving the stop to breakeven.
• If price closes decisively above resistance, avoid fighting the trend and look for buying opportunities on a successful retest.

⚠️ Risk Management:
Never risk more than 1–2% of your trading capital on a single trade. Always wait for candle confirmation, avoid chasing impulsive moves, and let the market confirm your bias before entering.

💡 Key Points:
• Price is testing a major resistance and supply zone.
• The ascending trendline continues to provide short-term support.
• A rejection could lead to a move toward 1.3450, 1.3425, and 1.3395.
• A breakout above 1.3505 may open the path toward 1.3525 and higher.
• Confirmation, disciplined execution, and proper risk management remain the keys to successful trading.

This analysis reflects a technical outlook based on the current chart structure and should not be considered financial advice. Always combine technical analysis with your own research and market conditions before making trading decisions. 📊📉