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 above the 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.
The GBP/USD pair traded in different directions in the range of 1.2188 - 1.1960 and closed the day without significant changes. Today it fell a little, dropping from the top price of 1.2188 to 1.2135. The GBP/USD pair stayed below the psychological level of 1.2188 over the weekend, indicating a lack of urgency to accumulate at the current levels. The bears are attempting to extend the GBP/USD pair's decline below 1.2188 in the week beginning of this week. Following the price of 1.2188 rejection, the seller takers still have the upper hand in the market, as they were able to impose more correction on the GBP/USD pair from the price of 1.2188.
The GBP/USD pair couldn't reach stiff resistance at 1.2188 and pulled back near 1.2068 support, which could be a swing entry opportunity. On the hourly chart, the EUR/USD pair is still trading below the MA (100) H1 moving average line (1.2188). The situation is similar on the one-hour chart. Based on the foregoing, it is probably worth sticking to the north direction in trading, and as long as the GBP/USD pair remains below MA 100 H1, it may be necessary to look for entry points to buy for the formation of a correction.
The GBP/USD pair slides below 1.2188 mark amid rebounding oil prices, modest USD weakness. The GBP/USD pair maintained its offered tone through the early London session and slipped below the 1.2188 psychological mark, hitting a fresh daily low in the last three hour at the price of 1.1960. The RSI is still signaling that the trend is downward as it is still strong below the moving average (100). Additionally, the RSI starts signaling a downward trend.
Forecast:
If the pair fails to pass through the level of 1.1998, the market will indicate a bullish opportunity above the strong support level of 1.1998. In this regard, buy deals are recommended higher than the 1.1998 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).
