GBPUSD: Could the 1.3420 Level Trigger a Pullback?GBP/USDOANDA:GBPUSDParadise_NoirGBPUSD has maintained a steady upward trend over recent sessions, driven by a weakening US dollar as markets anticipate the Federal Reserve will have room to loosen policy in the coming months. However, following this strong rally, the price is now approaching the 1.3420 zone—a key resistance area on the H2 chart and the trend's recent peak. On the chart, the price is moving within an ascending channel but has hit a strong supply zone where selling pressure has previously emerged. The rapid ascent to this resistance level increases the likelihood of a technical pullback to absorb profit-taking. If a price action rejection signal appears at 1.3420, GBPUSD could retreat to test the 1.3380 level before determining its next trend. While the bulls have not yet lost the bullish structure, the current price level no longer offers an attractive risk-to-reward ratio for new long positions. Therefore, the priority is to observe the price's reaction at the resistance zone before making any trading decisions. Entry: Sell around 1.3415 – 1.3425 TP: 1.3380 SL: Above 1.3435