The GBP/USD pair broke support which turned to strong resistance at the level of 1.3323 last week. The level of 1.3323 coincides with 38.2% of Fibonacci, which is expected to act as major resistance today.
The GBP/USD pair has faced strong resistances at the levels of 1.3323 because support had become resistance.
So, the strong resistance has been already formed at the level of 1.3323 and the pair is likely to try to approach it in order to test it again.
However, if the pair fails to pass through the level of 1.3323, the market will indicate a bearish opportunity below the new strong resistance level of 1.3323.
Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength above the moving average (100) and (50).
Thus, the market is indicating a bearish opportunity below 1.3323 for that it will be good to sell at 1.3323 with the first target of 1.3140. It will also call for a downtrend in order to continue towards 1.3050.
Also, it might be noted that the level of 1.3050 is a good place to take profit because it will form a new double bottom on hourly chart.
On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the resistance level of 1.3323, a further rise to 1.3380 can occur which would indicate a bullish market.
