Overview:
- The GBP/USD pair faced strong resistance at the level of 1.2973 because the double top is set at the same point. So, the strong resistance has been already formed at the level of 1.2973 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 1.2973, the market will indicate a bearish opportunity below the new strong resistance level of 1.2973. Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50). Thus, the market is indicating a bearish opportunity below 1.2973 so it will be good to sell at 1.2973 with the first target at 1.2744 (pivot). It will also call for a downtrend in order to continue towards 1.2582 in coming days. The daily strong support is seen at 1.2582. On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.3135.
Weekly technical analysis:
- Resistance 2: 1.3135
- Resistance 1: 1.2973
- Pivot Point: 1.2744
- Support 1: 1.2582
- Support 2: 1.2353
