The Pound has failed to hold above the price of 1.3058 following last week's recovery. An one-hour close below 1.3058 could open the door for additional losses.
The GBP/USD pair drops to near 1.3000 ahead of US inflation. Hence, The GBP/USD pair is accumulating at the bottom of the bearish cycle around the area of 1.3000 - 1.2981.
The daily violation of Tuesday's pin low at 1.3000 would open way for test of 1.2950 support. A little better than expected US economic sentiment data may slow bears, bias is expected to remain firmly bearish while the action holds below falling 100 EMA and 50 EMA (around the levels of 1.3058 and 1.3081).
RSI is seeing major resistance below 40% where a corresponding reaction could occur. It sees a bearish exit of our ascending support-turned-resistance line signalling that we'll likely be seeing some bearish momentum from here.
Resistance and support of the GBP/USD pair are set at 1.3058 and 1.3081, respectively. As known, Fibonacci retracement is used to determine accurate psychological levels of support and resistance but it should be noted that the period of time should be taken into account, therefore in the daily chart the price has still been moving below 38.2% Fibonacci retracement levels and 50%.
Thence, our forecast for April 12-13, 2022 will be in the following form:
Below 1.3058, look for further downside move with targets at the levels of 1.2981 and 1.2950.
Moreover, if the the price of the GBP/USD pair breaks 1.2950 and closes below it, the market will indicate a bearish opportunity below 1.2950 then next target will be around 1.2920
Stop losses should be placed above the major resistance level of 1.3081.
