The GBP/USD pair dropped from the level of 1.2056 to the bottom around 1.1921. But the pair couldn't rebound from the bottom of 1.1921.
Today, the first support level is seen at 1.1921, and the price is moving in a bearish channel now. Furthermore, the price as been set below the strong resistance at the level of 1.2056 , which coincides with the 38.2% Fibonacci retracement level.
This resistance has been rejected several times confirming the downtrend. Additionally, the RSI starts signaling a downward trend.
As a result, if the GBP/USD pair is able to break out the first support at 1.1921, the market will decline further to 1.1850 in order to test the weekly support 1.
The pair will probably go down because the downtrend is still strong. Consequently, the market is likely to show signs of a bearish trend.
The strong resistance is seen at the level of 1.2056 because it represents the weekly resistance 1. Equally important, the RSI and the moving average (100) are still calling for a downtrend.
Therefore, the market indicates a bearish opportunity at the level of 1.2056 in the H1 chart. So, it will be good to sell below the level of 1.2056 with the first target at 1.1850 and further to 1.1800.
At the same time, the breakup of 1.2056 will allow the pair to go further up to the levels of 1.2098 in order to retest the weekly resistance 1.
Always rememebr that the market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Forecast (GBP/USD) :
The volatility is very high for that the GBP/USD is still moving between 1.2056 and 1.1800 in coming hours. Consequently, the market is likely to show signs of a bearish trend again. Hence, it will be good to sell below the level of 1.2056 with the first target at 1.1850 and further to 1.1800 in order to test the daily support 2. However, if the GBP/USD is able to break out the daily support at 1.1800, the market will fall further to 1.1750 to approach support 2 next week.