The trend of GBP/USD pair movement was controversial as it took place in the downtrend channel. Due to the previous events, the price is still set between the levels of 1.2128 and 1.2303, so it is recommended to be careful while making deals in these levels because the prices of 1.2128 and 1.2203 are representing the resistance and support respectively.
The level of 1.2128 coincides with a golden ratio (38.2% of Fibonacci), which is expected to act as major resistance today. The Relative Strength Index (RSI) is considered overbought because it is below 55.
The RSI is still signaling that the trend is upward as it is still strong abovethe moving average (100). This suggests the pair will probably go up in coming hours. Accordingly, the market is likely to show signs of a bullish trend.
Therefore, it is necessary to wait till the uptrend channel is passed through. Then the market will probably show the signs of a bullish market. In other words, buy deals are recommended above the price of 1.2128 with the first target at the level of 1.2230. From this point, the pair is likely to begin climbing movement to the price of 1.2303 with a view to test the daily resistance at 1.2399.
Forecast:
If the pair fails to pass through the level of 1.2128, the market will indicate a bullish opportunity above the strong support level of 1.2128. In this regard, buy deals are recommended higher than the 1.2128 level with the first target at 1.2230. It is possible that the pair will turn upwards continuing the development of the bullish trend to the level 1.2303. However, stop loss has always been in consideration thus it will be useful to set it above the last double top at the level of 1.2399 (notice that the major resistance today has set at 1.2399).
