GBPUSD Under a Test for a Breakout Toward August Highs

On the four-hour chart, GBPUSD is attempting to recover the August peak by testing the resistance level at 1.21429 and breaking into the green shaded area. The fact that the GBPUSD is trading above the long-term and short-term exponential moving averages gives credibility to the breakout likelihood. Then we keep an eye on the next target of 1.24066.

In the opposite case, a reversal from the resistance level 1.21429 and failure to break out of it may invalidate the previous hypothesis and lead the GBPUSD to test the support level at 1.20080, and a breach below this level may lead the GBPUSD to a further decline towards 1.7787.