Red line- bearish divergence
blue lines- Fibonacci extension targets
Black line- support trend line broken
Green line- horizontal support broken
GBPUSD is trading around 1.2033. Price has provided us with a bearish reversal signal once price broke below 1.21-1.2110. Recently price bounced back up towards the break down area and got rejected. This back test and rejection is a bearish sign. Previous support at 1.21-1.2110 is now important short-term resistance. As long as price remains below this level we expect GBPUSD to move towards our first target of 100% extension lower at 1.1910.
