The GBP/USD pair has broken below the 100-day moving average line, followed by a bearish rally compiled of last three daily candles.
The first lies at the 1.3070 demand area, which is a significant support zone, and the price is currently trying to break above it. If Bitcoin breaks below the moving average, the reversal will likely be confirmed, and a new bearish rally will follow.
The GBP/USD pair crossed key support to hit a low below 1.3114 in a rally fueled by the liquidation of many of short positions.
The GBP/USD pair continues to move downwards from the level of 1.3114. Yesterday, the pair dropped from the level of 1.3114 to the bottom around 1.3070.
Today, the first resistance level is seen at 1.3149 followed by 1.3114 (the weekly pivot point), while daily support 1 is found at 1.3000.
Also, the level of 1.3114 represents a weekly pivot point for that it is acting as major resistance/support this week.
Amid the previous events, the pair is still in a downtrend, because the GBP/USD pair is trading in a bearish trend from the new resistance line of 1.3114 towards the first support level at 1.3000 in order to test it.
If the pair succeeds to pass through the level of 1.3000 , the market will indicate a bearish opportunity below the level of 1.3000 to reach the second target 1.2926.
However, if a breakout happens at the resistance level of 1.3184, then this scenario may be invalidated.
