Overview :
- The GBP/USD pair reached a new minimum at the price of 1.3833. So, today the price may reach one more minimum around the spot of 1.3833, which coincides with the ratio of 23.6% Fibonacci.
- Today, the GBP/USD pair is challenging the psychological resistance at 1.3868. Hence, the resistance is seen at the level of 1.3868 in the one-hour time frame.
- We expect the GBP/USD pair to continues moving in a downtrend below the level of 1.3868 towards the first target at 1.3776, while major resistance is found at 1.3896 (100% Fibonacci Expansion).
- On the downside, a clear break at the level of 1.3776 could trigger further bearish pressure testing 1.3746 , which represents the major support today.
Forecast :
- As a result, it is gainful to sell below this price of 1.3868 with targets at 1.3776 and 1.3746. However, the bullish trend is still expected for the upcoming days as long as the price is above 1.3746.
On the H4 :
- The GBP/USD pair continues to move in a downtrend from the level of 1.3969 since last week. Thus, major resistance is seen at 1.3969, while immediate support is found at 1.3833.
- Additionally, it should be noted that the resistance coincides with the ratio of 61.8% Fibonacci (1.3969). Today, we guess that the pair will be traded lower in the early session and try to reach the first support at the level of 1.3833.
- The bias is neutral in the nearest term probably with a little bearish bias testing 1.3833 area, which needs to be clearly broken to the down side to keep the bearish scenario.
- A clear break below that area (1.3833) could lead the price to the downtrend zone in the nearest term testing 1.3776.
- Thence, we confirm the bearish scenario. Right now, the pair will probably go down because a downward trend is still strong and the Stochastic indicator is still signaling that the trend is downward.
- Therefore, it is a good idea to sell below the resistance of 1.3896 with the first target at 1.3776.
- If the GBP/USD pair is able to break the first target, then the pair will face a strong bearish bias towards the 1.3743 level.
