The GBP/USD pair dropped sharply from the level of 1.2218 towards 1.1991. Now, the price is set at 1.2068. On the H1 chart, the resistance is seen at the levels of 1.2098 and 1.2164.
Volatility is very high for that the GBP/USD pair is still expected to be moving between 1.2164 and 1.1991 in coming hours.
Currently, the price is moving in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bearish trending market. Additionally, the RSI starts signaling a downward trend. The price is still below the moving average (100) and (50).
In the short term, we expect the GBP/USD pair to continue to trade in a bullish trend from the new support level of 1.1991 to form a bullish channel. Also, it should be noted that major resistance is seen at 1.2164, while immediate resistance is found at 1.2099.
According to the previous events, the pair is likely to move from 1.2099 towards 1.2060 and 1.1991 as targets.
In the H1 time frame: However, if the pair fails to pass through the level of 1.2099, the market will indicate a bearish opportunity below the level of 1.2099. So, the market will decline further to 1.1991 in order to return to the daily bottom (1.1991). Moreover, a breakout of that target will move the pair further downwards to 1.1950.
