GBP has been trading sideways at the price of 1.2218. I found strong rejection of the 20SMA on the 4H time-frame, which is sign that sellers are still present. Bearish flag is in creation and I expect –potential more downside. Today we have FOMC meeting minutes, which is the reason why the currencies are in equilibrium. Market is awaiting for new informations.
Green rectangle – Broken support became resistance
Orange rectangle – Support level
Purple falling line – Expected path
Bearish flag is in creation based on the 4H time-frame. Watch for potential breakout to the downside to confirm further downward continuation. I found broken Head and Shoulders pattern in the background, which is another good sign that sellers are present. Resistance level is found at the price of 1.2230 and support level at 1.2110.
Selling opportunities are preferable.