Red line- bearish divergence
Blue lines- Fibonacci extension targets
Black line- support trend line
Green line- horizontal support
GBPUSD is trading around 1.2148. Price is trading just above the key short-term support at 1.2110. This support level is being tested over the last few trading sessions but so far price only briefly dips below it and bulls step in to push price back above it. Price has already broken below the black trend line support and if we see it break below the green horizontal support we will get a new bearish signal. In this case we should expect price to fall towards 1.19-1.1920 and the 100% Fibonacci extension target. As long as price holds above the support, bulls remain safe and we could see price forming new higher highs above 1.2440.
