Overview:
- The GBP/USD pair dropped sharply from the level of 1.2665 towards 1.2030. Now, the price is set at 1.2422 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 1.2544 and 1.2272 in coming hours. Furthermore, the price has been set below the strong resistance at the levels of 1.2665 and 1.2544. Currently, the price is moving in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bearish trending market. Consequently, the first support is set at the level of 1.2272. According to the previous events, we expect the GBP/USD pair to trade between 1.2500 and 1.2300. So, the major support stands at 1.2272, while daily resistance is found at 1.2544. Therefore, the market is likely to show signs of a bearish trend around the spot of 1.2500 - 1.2544. Consequently, the market is likely to show signs of a bearish trend. In other words, sell orders are recommended below 1.2500 with the first target at the level of 1.2272. In the long term, if the trend is be able to break the first support at the level of 1.2272, then the market will continue falling towards the weekly support 2 at 1.2151 this week. However, it would also be conscious to consider where to place a stop loss; this should be set above the second resistance of 1.2665.
