The GBP/USD pair continues to move downwards from the level of 1.2075. Yesterday, the pair dropped from the level of 1.2075 (this level of 1.2075 coincides with the double top - 78% of Fibonacci retracement levels - last bullish wave) to the bottom around 1.1917 (currently price).
Today, the first resistance level is seen at 1.1953 followed by 1.1986 (the weekly pivot point), while daily support 1 is found at 1.1873.
Also, the level of 1.1986 represents a weekly pivot point for that it is acting as major resistance/support this week.
Amid the previous events, the pair is still in a downtrend, because the GBP/USD pair is trading in a bearish trend from the new resistance line of 1.1953 towards the first support level at 1.1850 in order to test it.
If the pair succeeds to pass through the level of 1.1953, the market will indicate a bearish opportunity below the level of 1.1953.
On the downside, the 1.1953 level represents resistance. The next major support is located near the 1.1850, which the price may drift below towards the 1.1800 support region.
On the other hand, if a breakout happens at the resistance level of 1.2075, then this scenario may be invalidated.
Forecast (GBP/USD) :
The volatility is very high for that the GBP/USD is still moving between 1.1953 and 1.1800 in coming hours. Consequently, the market is likely to show signs of a bearish trend again. So, it will be good to sell below the level of 1.1953 with the first target at 1.1850 and further to 1.1800 in order to test the daily resistance. Moreover, if the GBP/USD is able to break out the daily support at 1.1800 , the market will decline further to 1.1750 to approach support 3 today.
Trading GBP/USD :
Uptrend scenario :
An uptrend will start as soon, as the market rises above resistance level 1.1953, which will be followed by moving up to resistance level 1.1986. Further close above the high end may cause a rally towards 1.2075. Nonetheless, the weekly resistance level and zone should be considered.