With the down break of the larger upward Pitchfork channel, the GBP/USD pair changed behavior from bullish to bearish. The key support at 1.3055 is broken and this is a good confirmation of weakness. I also found a breakout of the upward mini Pitchfork channel, which is another confirmation of weakness. As long as the resistance is holding at 1.3160, a downward movement is expected. The short-term trend is bearish.
R1: 1.3148
R2: 1.3186
R3: 1.3210
Pivot: 1.3123
S1: 1.3085
S2: 1.3060
S3: 1.3025
Trading recommendation: We are bearish on the GBP/USD from 1.3050 with the downward target at the price of 1.2905. The protective stop is placed at 1.3165.
