FX.co ★ Technical analysis of GBP/USD for October 08, 2019

Overview:

Pair: GBP/USD.

The renewal of the downward impulse is expected with the testing of new area lows around the 1.2204 point sooner.

The GBP/USD pair continues moving in a bearish trend from the resistance levels of 1.2333 and 1.2283. Currently, the price is in a bearish channel.

Amid the previous events, the price is still moving between the levels of 1.2283 and 1.2204.

This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100). The indicators are still giving a strong decline signal.

The pair is still in a downtrend, because the GBP/USD pair is trading in a bearish trend from the new resistance line of 1.2283 towards the first support level at 1.2204 in order to test it.

If the pair succeeds to pass through the level of 1.2204, the market will indicate a bearish opportunity below the level of 1.2204 so as to continue towards next objectif of 1.2140 (S2).

However, if a breakout happens at the resistance level of 1.2333, then this scenario may be invalidated.