The GBP/USD pair is trading on major resistance (1.3043), prepare for a bounce. The trend couldn't continue moving upwards because it had rebounded from the top of 1.3006 to close at 1.2885.
Today, the first support level is seen at 1.2865, the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 1.3043.
The level of 1.2865 coincides with the weekly pibot point (between 61.8% and 50% Fibonacci retracement level).
RSI (14) sees major descending resistance line acting as resistance to push price down from spot of 1.3043 - 1.2936. This would suggest a bearish market because the RSI indicator is still in a negative spot and does not show any trend-reversal signs.
Therefore, there is a possibility that the GBP/USD pair will move downside and the structure of a fall does not look corrective. The trend is still below the 100 EMA for that the bearish outlook remains the same as long as the 100 EMA is headed to the downside. .
As a result, if the GBP/USD pair is able to break out the first support at 1.2865, the market will decline further to 1.2751 in order to test the weekly support 1.
Amid the previous events, the price is still moving between the levels of 1.2936 and 1.2751. If the GBP/USD pair fails to break through the resistance level of 1.2936, the market will decline further to 1.2751 as as the first target.
Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell now at the level of 1.2890 with the first target at 1.2751.
If the trend breaks the minor support at 1.2751, the pair will move downwards continuing the bearish trend development to the level of 1.2573 in order to test the daily support 2.
Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 1.3043/1.2936 this week.
In general, we still expect the bearish trend to continue during the upcoming sessions, provided that it is stable below the levels of 1.3043 and 1.2936.
The expected trading range for today is between 1.2936 resistance and 1.2751 support
The expected general trend for today : Bearish
Good luck.
