The GBP/USD pair hit the weekly pivot point and resistance 1, because of the series of relatively equal highs and equal lows. But the pair has risen in order to top at the point of 1.1325. Hence, the major resistance was already set at the level of 1.1325. Moreover, the double top is also coinciding with the major resistance this week. Additionally, the RSI is still calling for a strong bullish market as well as the current price is also above the moving average 100.
Therefore, it will be advantageous to buy above the support area of 1.1241 with the first target at 1.1325. From this point, if the pair closes above the weekly pivot point of 1.1241, the EUR/USD pair may resume it movement to 1.1325 to test the weekly resistance 1.
Today, the EUR/USD pair has broken resistance at the level of 1.1241 which acts as support now. Thus, the pair has already formed minor support at 1.1241. The strong support is seen at the level of 1.1241 because it represents the weekly support 1. Equally important, the RSI and the moving average (100) are still calling for an uptrend. Therefore, the market indicates a bullish opportunity at the level of 1.1241 in the H1 chart.
Also, if the trend is buoyant, then the currency pair strength will be defined as following: EUR is in an uptrend and USD is in a downtrend. Buy above the minor support of 1.1241 with the first target at 1.1325 and continue towards 1.1438 (the weekly resistance 2).
On the other hand, if the price closes below the minor support, the best location for the stop loss order is seen below 1.1241; for that, the price will fall into the bearish market in order to go further towards the strong support at 1.1180 to test it again. Furthermore, the level of 1.1045 will form a double bottom.
Stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss below the last bottom at 1.1003.
