GBP/USD has been trading exactly what I expected yesterday. GBP did trade lower and met our downward target at 1.2230, which is also a support level. The momentum is still on the downside and in case of the breakout of 1.2215; there is chance for more downside movement. Next support level is set at the price of 1.2110
Yellow rectangle – Important support levels
Purple lines – Broken pennant pattern
Purple falling line – Expected path
MACD oscillator is showing good new momentum down in the background and there is chance for more downside in case of the down break. Key support is at 1.2215 and resistance at 1.2267. Bulls need to be very cautious as there is strong downward momentum in the background and potential selling the rally type of feeling.
