A trend in the GBP/USD pair was argumentative as it was trading in a narrow sideways channel, the market showed signs of instability.
Amid the previous events, the price is still moving between the levels of 1.2169 and 1.2301.
Resistance and support are seen at the levels of 1.2301 (also, the double top is already set at the point of 1.2405) and 1.2301 respectively.
Therefore, it is recommended to be cautious while placing orders in this area. So, we need to wait until the sideways channel has completed.
The current price is seen at 1.2274 which represents a key level today.
The level of 1.2301 will act as the first resistance today.
Hence, if the pair fails to pass through the level of 1.2301, the market will indicate a bearish opportunity below the strong resistance level of 1.2301.
Sell deals are recommended below the level of 1.2301 with the first target at 1.2113. If the trend breaks the support level of 1.2113, the pair is likely to move downwards continuing the development of a bearish trend to the level 1.2040.
Therefore, there is a possibility that the GBP/USD pair will move downwards below the price of 1.2113, which coincides with a ratio 38.2% of Fibonacci retracement.
The falling structure does not look corrective. In order to indicate a bearish opportunity below 1.2113. If the pair succeeds to pass through 1.2113, it will move downwards so as to continuing the bearish trend development to 1.1993 in order to test the daily support 1.
Uptrend scenario :
An uptrend will start as soon, as the market rises above resistance level 1.2301, which will be followed by moving up to resistance level 1.2405. Further close above the high end may cause a rally towards 1.2509. Nonetheless, the weekly resistance level and zone should be considered.