Blue line- break out level
Black line- support trend line
GBPUSD is trading around 1.2690. Price remains under pressure and as we discussed in a previous analysis, GBPUSD remains vulnerable to a move towards the blue horizontal level of 1.2660 where the break out occurred. A back test of the break out area is justified as we noted in our previous analysis. GBPUSD continues forming lower highs and price remains vulnerable to more downside. Resistance is found at 1.2750 and as long as price is below this level, near term trend remains bearish. GBPUSD will very likely form a higher low around the blue horizontal support area and above the black trend line. Failure to hold above the black trend line will cancel any medium-term bullish scenario. Current price action does not produce any new trading opportunities.
