GBP/USD seems to be determined to reach fresh new lows after it has ignored the 1.2952 - 1.2904 support area. The pair lost 1.14% in the last three days, now is trading at 1.2888 level. It could resume the downside momentum if stabilizes below the 1.2900 psychological level.
The USD is very strong lately and it could appreciate further versus the major currencies, GBP/USD could drop towards the 1.2735 level, 50% Fibonacci line on the short term. It is somehow expected to drop further after the breakdown from the ascending channel.
We could have a great selling opportunity if the price tests and retests the 1.2952 - 1.2904 area, the 38.2% retracement level and the sliding parallel line (SL1) of the major ascending pitchfork. The next downside target could be at the 50% Fibonacci level, GBP/USD could be attracted by the confluence area between the sliding line (sl) of the descending pitchfork and the 50% retracement level.
A larger drop could be confirmed only after a valid breakdown below these downside obstacles. Personally, I would like to see a retest before the price drops further, it's risky to sell without a retest because the price could come back at the uptrend line and at the median line (ML) on the short term.
Trading TipsGBP/USD is under massive selling pressure and it could reach new lows without a retest on the Daily chart. We'll have a great selling opportunity if the price retests the 1.2904 level, the 38.2% level and maybe the SL1. The pair is targeting the inside sliding parallel line (sl) of the descending pitchfork, we could have a downward channel between sl and sl1 of the major descending pitchfork.
The retest will give us the chance to place the Stop Loss above the nearest former high. Technically, the major downside target is somehow at the lower median line (LML) of the ascending pitchfork, or at the median line (ml) of the descending pitchfork.