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 dropped down in order to bottom at the point of 1.2031. Hence, the major support was already set at the level of 1.1991. Moreover, the double bottom is also coinciding with the major support this week. Additionally, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100.
The GBP/USD pair has dropped sharply from the level of 1.2164 towards 1.1991. Now, the price is set at 1.2030 to act as a daily pivot point.
It should be noted that volatility is very high for that the GBP/USD pair is still moving between 1.2100 and 1.1950 in coming hours.
Furthermore, the price has been set below the strong resistance at the levels of 1.2098 and 1.2164, which coincides with the 23.6% and 38.2% Fibonacci retracement level respectively.
Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the GBP/USD pair is continuing in a bearish trend from the new resistance of 1.2098.
Thereupon, the price spot of 1.2098 remains a significant resistance zone. Therefore, a possibility that the GBP/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective, in order to indicate a bearish opportunity below 1.2099, sell below 1.2099 with the first targets at 1.1991 (the double bottom is seen at 1.1991) and second target 1.1950 - 1.1950. However, the stop loss should be located above the level of 1.2164.
