Overview:
As expected, the GBP/USD pair continues to move downwards from the zone of 1.3116. Yesterday, the pair dropped from the level of 1.3116 to 1.3012. The price of 1.3116 coincides with a ratio of 38.2% Fibonacci on the daily chart.
Today, resistance is seen at the levels of 1.3116 and 1.3180. So, we expect the price to set below the strong resistance at the levels of 1.3116 and 1.3180; because the price is in a bearish channel now.
The RSI starts signaling a downward trend. Consequently, the market is likely to show signs of a bearish trend.
So, it will be good to sell below the level of 1.3116 with the first target at 1.3000 and further to 1.2912 in order to test the daily support.
If the GBP/USD pair is able to break out the daily support at 1.2912, the market will decline further to 1.2818 to approach support 3 today.
However, the price spot of 1.3116 and 1.3180 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.3180 is not breached.
