On the daily GBPUSD chart below, we can see that the price has finally reached the top of the range at the 1.24 handle. This will be a key level for both buyers and sellers. The buyers will need to break above the level with conviction to keep the rally going.

The sellers are likely to start piling in here to target a fall towards the bottom of the range at 1.1839 and beyond. Beware that if this was just a squeeze on dollar longs, the following rally in the US Dollar will be aggressive.

GBPUSD Technical Analysis

On the 4 hour chart below, we can see that we have a rising wedge right at the top of the range. This is a reversal pattern and we can also see that we have a big and long divergence with the MACD. The setup for the sellers looks incredibly good now.

Generally, the target would be the bottom of the pattern, which in this case comes at the 1.20 handle. So, the sellers have a really high reward to risk ratio here. The buyers, on the other hand, will need to break above the upper trendline and the top of the range to invalidate the selling setup and extend the rally.

On the 1 hour chart below, we can see that the buyers may lean on the 61.8% Fibonacci retracement level and the trendline before trying to break above the top of the range. The sellers will want to wait for a break below the trendline before piling in and extend the fall.