Even though on the Cable's 4-hour chart it can be seen that the 50 EMA is still above the 200 EMA (Golden Cross) but with the emergence of the Bearish 123 pattern which was followed by the emergence of the Bearish Ross Hook (RH) and the deviation between the GBP/USD price movement and the Stochastic Oscillator indicator which also happened to be touches the Overbought level, in the near future GBP/USD has the potential to weaken down to the level of 1.2696 as the main target and if the momentum and volatility support Cable weakening then 1.2668 will be the next target to be aimed at, but on its way to these targets It is possible that GBP/USD will experience a strengthening correction where the resistance level of 1.2764 will try to be tested in the near future, but as long as the strengthening correction does not penetrate above the 1.2812 level, the weakening that will occur in the near future will still continue.
(Disclaimer)
