Overview:
- The GBP/USD pair continues to move downwards from the area of 1.2765. Last week, the pair dropped from the level of 1.2765 to 1.3634. Today, resistance is seen at the levels of 1.2765 and 1.2806. So, we expect the price to set below the strong resistance at the levels of 1.2765; because the price is in a bearish channel now. The level of 1.2765 which coincides with a ratio of 38.2% Fibonacci on the H1 chart. Amid the previous events, the price is still moving between the levels of 1.2765 and 1.2600. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.2765. Furthermore, if the GBP/USD pair is able to break out the bottom at 1.3634, the market will decline further to 1.2600. Moreover, the price will fall into a bearish trend in order to go further towards the strong support at 1.2550 to form a new double bottom. On the other hand, if the price closes above the strong resistance of 1.2765, the best location for a stop loss order is seen above 1.2780.
