Overview:
- The GBP/USD pair continues to move downwards from the level of 1.3138. Also, it should be noted that the pair dropped from the level of 1.3138 (this level of 1.3138 coincides with the ratio of 50% Fibonacci Expansion) to the bottom around the spot of 1.3035. Today, the first resistance level is seen at 1.3138 followed by 1.3219, while daily support 1 is found at 1.2957. Also, the level of 1.3138 represents a weekly pivot point for that it is acting as major resistance this week. Since the trend is below the 50% Fibonacci level, the market is still in a downtrend. Overall, we still prefer the bearish scenario. Equally important, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100. Amid the previous events, the pair is still in a downtrend, because the GBP/USD pair is trading in a bearish trend from the new resistance line of 1.3138 towards the first support level at 1.2957 in order to test it. If the pair succeeds to pass through the level of 1.2957, the market will indicate a bearish opportunity below the level of 1.2827 in coming days. However, if a breakout happens at the resistance level of 1.3219, then this scenario may be invalidated.
