The GBP/USD pair's outlook and further decline is expected with 1.1879 minor resistance intact. Current down trend should move from the last resistance levels of 1.1879 , 1.1928 and 1.1979.
Firm break there could prompt downside acceleration to last bearish wave of 1.1716. On the hourly chart, the EUR/USD pair suggests the corrective advance could continue, particularly if the pair surpasses the immediate resistance level at 1.1879.
Technical indicators are recovering from extreme oversold readings, holding far below their midlines, a sign that there's a long way ahead before a substantial recovery takes place.
Moving averages, in the meantime, maintain their bearish slope way above the current level. Furthermore, although the news is bearish for the Pound , professional may not want to sell weakness, but rather following a rebound rally. Additionally, some aggressive counter-trend buyers may be defending parity.
On the upside, break of 1.1879 minor resistance will turn bias back to the upside for stronger rebound. The GBP/USD pair will have been trading in a tight sideway range since yesterday for that the price has also set below the daily resistance 1 at the level of 1.1879, moreover the price has already formed double bottom at the 1.1716 level.
In particular, it should noticed that at the level of 1.1716 which represents the support, we can expect explosive breakout and it is likely that the market is going to start showing the signs of bearish market.
In other words, it will be a good sign to re-sell above double bottom at the level of 1.1716 with a first target at 1.1650 in order to test the next new support and it will drop towards 1.1600.
However, if the the price of the GBP/USD pair breaks 1.1928 and closes above it, the market will indicate a bullish opportunity above 1.1928 for temporary time.
Trading recommendations:
According to previous events, the GBP/USD pair is still moving between the level of 1.1716 and the 1.1928 level (these levels coincided with the last bearish wave and Fibonnacci retracement levels 50% and ). It should be noted that the 1.1879 price will act as a minor resistance on August. Therefore, it will be too gainful to sell short below 1.1879 and look for further downside with 1.1716 and 1.1650 targets. It should also be reminded that stop loss must never exceed the maximum exposure amounts. Thus, stop loss should be placed at the 1.1979 level today.
