The GBP/USD pair eases below the levels of 1.3260 and 1.3379 ( a range between 1.3379 - 1.3157).
The EUR/USD pair is trading under pressure below 1.3379, as the US dollar rebounds in tandem with the treasury yields amid rising high expectations. Europe's covid19 concerns continue to undermine the Pound.
Intraday bias in GBP/USD remains neutral for the moment. Further rise is in favor with 1.3157 minor support intact. Above 1.3157 will resume the rebound from 1.3157 to 1.3327 resistance.
Firm break there should affirm the case that correction from 1.3327 has completed at 1.3379.
The GBP/USD pair broke support which turned to strong resistance at 1.3379. Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains below the resistance (1.3379) which is expected to act as major resistance today.
This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment.
Amid the previous events, the GBP/USD pair is still moving between the levels of 1.3379 and 1.3157, so we expect a range of 222 pips in coming days.
Therefore, the major resistance can be found at 1.3379 providing a clear signal to sell with a target seen at 1.3157. If the trend breaks the minor support at 1.3157, the pair will move downwards continuing the bearish trend development to the level of 1.3090 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 1.3379 this week.
