Overview:
- The GBP/USD pair broke support which turned into strong resistance at the level of 1.4257 last week. The level of 1.4414 is expected to act as major resistance today. From this point, we expect the GBP/USD pair to continue moving in a bearish trend from the resistance levels of 1.4257 and 1.4390. Currently, the price is moving in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. So, the market is likely to show signs of a bearish trend around the spot of 1.4257 - 1.4390. In other words, sell orders are recommended below the spot of 1.4257 or 1.4390 with the first target at the level of 1.4297. This would suggest a bearish market because the moving average (100) is still in a positive area and is not showing any trend-reversal signs at the moment. Moreover, if the GBP/USD pair succeeds to break through the support level of 1.4297, the market will decline further to 1.4223. The pair is expected to drop lower towards at least 1.4223 with a view to test the major support this week. However, if a breakout happens at the resistance level of 1.4414, then this scenario may be invalidated.
