GBP/USD at a Crossroads: Bulls or Bears in Control?

Alright traders, let’s break down the GBP/USD Daily chart. The current price is around 1.28824, sitting just above the 21 EMA at 1.28622. We’ve seen a pullback from the highs in mid-July, forming a descending channel. The price is now testing the 21 EMA and the rising trendline, making this a critical juncture. A break above this level could signal a bullish reversal, with the next target at the resistance level of 1.29425. On the other hand, if the price gets rejected here, we could see a drop back to support around 1.28000.

Given the current setup, I’m leaning towards a neutral stance until a clear breakout or breakdown occurs. If we see a strong close above the 21 EMA and the descending channel, it would be a signal to go long, aiming for the 1.29425 resistance. Conversely, if the price fails to break these levels and shows bearish rejection, I'll look for short opportunities with stops just above the EMA. Keep an eye on these key levels and stay sharp with your trades.