Overview:
The psychological level of the GBP/USD pair is seen at the level of 1.4407. This level is acting as strong resistance and it coincides with a ratio of 11.8% of Fibonacci retracement levels in the daily chart. Therefore, the first key level is seen at 1.4407 (the daily pivot point). Furthermore, a trend was very clear heading downwards. Thus, we expect that the trend is going to call for a bearish market at the level of 1.4407 because sellers are asking for a higher price. As a result, sell at the level of 1.4407 with a target at 1.4300 and 1.4240. Also, it should be noted that the level of 1.4234 represents the weekly support 3.
Observations:
- Major support is found at the level of 1.4234; and major resistance has placed at the daily pivot point (1.4407)
- We expect a new range about 120 pips.
- If the trend is upward, then the strength of the currency will be defined as following: GBP is in an uptrend and USD is in a downtrend.
