GBPUSD has been trading downwards in past 4hours and I see potential more downside to come. GBP found that level of resistance at 1.2722, which is critical for the GBP at this stage. The order flow is on the downside. Watch for selling opportunities
Orange rectangle – Important resistance
Blue rectangle- Support 1
Blue rectangle – Support 2
Blue rectangle – Support 3
I found strong rejection of the critical resistance at the price of 1.2722, which is for me strong sign of the weakness and lack of buying interest on the GBP. The RSI oscillator is showing the flip down, which is another confirmation factor for downside. Additionally, I found that bear flag completion pattern, which adds more weakness on the GBP. Support levels are seen at the price of 1.266, 1.2643 and 1.2575. Watch for selling opportunities.
