The GBP/USD pair broke support at the level of 1.2344 which acts as a resistance this week. The GBP/USD pair faced resistance at the level of 1.2344, while minor resistance is seen at 1.2300. Support is found at the levels of 1.2187 and 1.2090. Also, it should be noted that a daily pivot point has already set at the level of 1.2266. Equally important, the GBP/USD pair is still moving around the key level at 1.2266, which represents a daily pivot in the H1 time frame at the moment. The GBP/USD pair dropped sharply from the level of 1.2344 towards 1.2187. Now, the price is set at 1.2255. On the H1 chart, the resistance is seen at the levels of 1.2300 and 1.2344.
Volatility is very high for that the GBP/USD pair is still expected to trade between 1.2344 and 1.2187 in coming hours. In the short term, we expect the GBP/USD pair to continue to trade in a bearish trend from the new resistance level of 1.2344 to form a bearish channel.
Also, it should be noted that major resistance is seen at 1.2452, while immediate resistance is found at 1.2344. According to the previous events, the pair is likely to move from 1.2344 towards 1.2187 and 1.2090 as targets.
However, if the pair fails to pass through the level of 1.2344, the market will indicate a bearish opportunity below the level of 1.2344.
So, the market will decline further to 1.2344 in order to continue towards the next objective of 1.2090. Moreover, a breakout of that target will move the pair further downwards to 1.1933.
However, if a breakout happens at the resistance level of 1.2452, then this scenario may be invalidated.
