Overview:
- The GBP/USD pair continues moving downwards from the areas of 1.4349 and 1.4283. Last week, the pair dropped from the level of 1.4349 to 1.4052, which coincides with the double bottom on the H4 chart. Today, resistance is seen at the levels of 1.4228 and 1.4283. So, we expect the price to set below the strong resistance at the levels of 1.4228 and 1.4283 as the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 1.4283 and 1.4050. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.4349. Furthermore, if the GBP/USD pair is able to break out the bottom at 1.4052, the market will decline further to 1.3980. Additionally, the price will fall into a bearish trend in order to go further towards the strong support at 1.3888. On the other hand, if the price closes above the strong resistance of 1.4349, the best location for a stop loss order is seen above 1.4366.
Technical Levels:
- R3: 1.4647
- R2: 1.4513
- R1: 1.4349
- PP: 1.4186
- S1: 1.4052
- S2: 1.3888
- S3: 1.3750
