FX.co ★ GBP/USD: deeper drop needs confirmation

GBP/USD Strong Sellers

The GBP/USD pair dropped at the time of writing. It was traded at 1.2063, far below today's high of 1.2121. Personally, I've drawn a downtrend line which represents dynamic resistance (upside obstacle). As long as it stays below this line, the currency pair could drop deeper. Also, today's high of 1.2121 represents an upside obstacle.

On the other hand, the 1.2025 level and the 1.2021 former low represent downside obstacles.

GBP/USD Trading Conclusion

Staying below the downtrend line and dropping below the 1.2021 level could activate more declines and could help the sellers catch a larger downside movement.