Red line -resistance trend line
GBPUSD is trading around 1.2135. Trend is bearish. Price is making new lows. Recently we warned traders that price was challenging important resistance and a rejection at resistance and a break below 1.2428 would be a new sell signal. Bulls were not strong enough to push price above the red downward sloping resistance trend line. Price got rejected at the resistance and broke below the short-term support of 1.2428. After this break of support, the last two trading sessions have been a blood bath for bulls as price lost more than 300 pips. The RSI is not making new lower lows providing a bullish divergence. As long as price is below the red trend line, bears remain in control of the trend.
