As expected last week, the GBP/USD pair continues to move downwards from the areas of 1.2976 and 1.2929.
The pair dropped from the level of 1.2976 to 1.2853. Today, resistance is seen at the levels of 1.2976 and 1.3014. The level of 1.3014 coincides with a ratio of 50% Fibonacci on the H1 chart.
So, we expect the price to set below the strong resistance at the levels of 1.3014 and 1.2976; because the price is in a bearish channel now.
Amid the previous events, the price is still moving between the levels of 1.2976 and 1.2808.
In overall, we still prefer the bearish scenario as long as the price is below the level of 1.2976. Furthermore, if the GBP/USD pair is able to break out the bottom at 1.2853, the market will decline further to 1.2808 (daily support 2).
Next objective will be set at 1.2784. Hence, the price will fall into a bearish trend in order to go further towards the strong support at 1.2784.
On the other hand, if the price closes above the strong resistance of 1.3014, the best location for a stop loss order is seen above 1.3014.