Overview:
- The GBP/USD pair has dropped sharply from the level of 1.3086 towards 1.2933. Now, the price is set at 1.3001 to act as a daily pivot point. It should be noted that volatility is very high for that the GBP/USD pair is still moving between 1.3001 and 1.2865 in coming hours. Furthermore, the price is set below the strong resistance at the levels of 1.3086 and 1.3001, which coincides with the 38.2% and 23.6% Fibonacci retracement levels, respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the GBP/USD pair is continuing in a bearish trend from the pivot point (1.3001). Thereupon, the price spot of 1.3001 - 1.3086 remains a significant resistance zone. Therefore, a possibility that the GBP/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.3001, sell below 1.3001 with the first targets at 1.2865 (double bottom is seen at 1.2865). If the trend is able to break the double bottom at the level of 1.2865, then the market will continue falling towards the new double bottom 1.2776 on the H4 chart. However, the stop loss should be located above the level of 1.3105.
