Overview:
- The GBP/USD pair continues to move downwards from the level of 1.2970, which represents the first resistance in the H1 chart. Yesterday, the pair dropped from the level of 1.2970 to the bottom around 1.2911. Today, the first resistance level is seen at 1.2970 followed by 1.3078, while daily support is seen at the levels of 1.2883 and 1.2794. According to the previous events, the GBP/USD pair is still trapping between the levels of 1.2911 and 1.2794. Hence, we expect a range of 100 - 120 pips in coming days. The first resistance stands at 1.2970, for that if the GBP/USD pair fails to break through the resistance level of 1.2970, the market will decline further to 1.2883. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.2794 in order to test the second support (1.2794). On the contrary, if a breakout takes place at the resistance level of 1.3078 (the double top), then this scenario may become invalidated. Also, it should be noted that the major support is coincided witht he double bottom (1.2794).
Comment:
- We expect a range between the levels of 1.3078 - 1.2794.
- Resistance levels are seen at 1.2970 and 1.3078.
- Support is seen at 1.2883.
- The double bottom is found at the point of 1.2794.
