The GBP/USD pair regain most of yesterday's losses to stay within the 1.3060 zone after stepping on the support turned resistance trendline. Despite that, bearish actions were limited as the 100-day simple moving average (SMA) prevented any decreases below the levels of 1.3136 and 1.3102.
Briefly, yesterday the GBP/USD pair traded higher and closed the day in negative territory around 1.3060. Today it has also slightly decreased, having risen to the level of 1.3136, but the trend rebounded from the top of 1.3136 to down at 1.3060.
On the hourly chart, the GBP/USD pair is testing support (1.3052) - the moving average line MA (200) H1 (1.30655)
On the one -hour chart, it is still below the MA 100 H1 line. Based on the previous datum, it is probably worth sticking to the south direction in trading, and while the GBP/USD pair remains below MA 100 H1, it may be necessary to look for entry points to sell at the end of the correction.
However, if the pair fails to pass through the level of 1.3022, the market will indicate a bearish opportunity below the new strong resistance level of 1.3022 (the level of 1.3022 coincides with the ratio of 23.6% Fibonacci).
The market is indicating a bearish opportunity below the 1.3102 level so it will be a good sign to sell at 1.3102 with the first target of 1.3022. It will also call for a downtrend in order to continue towards 1.2973. The daily strong support is seen at 1.2973.
However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the price of 1.3160. The stop loss should be located above the level of 1.3136, since the price spot of 1.3136 - 1.3160 remains a significant resistance area.
