The GBP/USD pair continues to move downwards from the level of 1.2099. Yesterday, the pair dropped from the level of 1.2099 to the bottom around 1.1991. But the pair has rebounded from the bottom of 1.1991 to close at 1.2027.
Today, the first support level is seen at 1.1991, the price is moving in a bearish channel now. Furthermore, the price has been set below the strong resistance at the level of 1.2027, which coincides with the 23.6% Fibonacci retracement level.
This resistance has been rejected several times confirming the veracity of a 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 1.1991, the market will decline further to 1.1950 in order to test the weekly support 2.
Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell below the level of 1.2099 with the first target at 1.1991 and further to 1.1950.
Our sentiment on the GBP/USD pair - GBPvs. US Dollar :
- Short term : Bearish market in short term.
- Tacit : Bullish market in long term.
The general bearish opinion of this analysis is in opposition with technical indicators. As long as the invalidation level of this analysis is not breached, the bearish direction is still favored, however the current short-term correction should be carefully watched.
The bear must break through 1.2099 in order to resume the uptrend. It might be noted that the level of 1..1950 is a good place to take profit because it will tes the double top in coming hours.
However, stop loss is to be placed above the level of 1.2164.