The trend of GBP/USD pair movement was controversial as it took place in a narrow sideways channel, the market showed signs of instability.
Amid the previous events, the price is still moving between the levels of 1.2465 and 1.2545.
Also, the daily resistance and support are seen at the levels of 1.2545 and 1.2600 respectively.
Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed.
Yesterday, the market moved from its bottom at 1.2570 and continued to rise towards the top of 1.2519.
Today, in the one-hour chart, the current rise will remain within a framework of correction.
However, if the pair fails to pass through the level of 1.2540, the market will indicate a bearish opportunity below the strong resistance level of 1.2600 (the level of 1.2600 coincides with the double top too).
Since there is nothing new in this market, it is not bullish yet. Sell deals are recommended below the level of 1.2600 with the first target at 1.2465.
If the trend breaks the support level of 1.2465, the pair is likely to move downwards continuing the development of a bearish trend to the level 1.2433 in order to test the daily support 2 (horizontal red line).
Plus, the price will fall into the bearish market in order to go further towards the strong support at 1.2393 to test it again. Furthermore, the level of 1.2329 will form a double bottom.
However, traders should watch for any sign of a bullish rejection that occurs around 1.2600. The level of 1.2600 coincides with 100% of Fibonacci, which is expected to act as a major resistance today. Since the trend is below the 100% Fibonacci level, the market is still in a downtrend. Overall, we still prefer the bearish scenario.
