- As expected, the GBP/USD pair continues to move downwards from the areas of 1.3798 and 1.3750.
- Last week, the pair dropped from the level of 1.3798 to 1.3673. Right now the price is set at the point 1.3718.
- Today, resistance is seen at the levels of 1.3798 and 1.3876. So, we expect the price to set below the strong resistance at the levels of 1.3798 and 1.3876; because the price is in a bearish channel now.
- Amid the previous events, the price is still moving between the levels of 1.3673 and 1.3798. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.3798.
- Furthermore, if the GBP/USD pair is able to break out the bottom at 1.3637, the market will decline further to 1.3614 (daily support 2).
- Hence, the price will fall into a bearish trend in order to go further towards the strong support at 1.3614 to test it again. The level of 1.3600 in order to form a double bottom in the h1 chart.
- On the other hand, if the price closes above the strong resistance of 1.3876, the best location for a stop loss order is seen above 1.3900.
