FX.co ★ Technical analysis on GBPUSD for February 7th, 2023.

Green line- resistance

Blue line- support trend line (broken)

GBPUSD is in a short-term bearish trend. Price is trading at 1.1980 making new lower lows and lower highs, approaching our short-term target of 1.19-1.18 after it broke below the blue upward sloping trend line. Traders were warned that GBPUSD was vulnerable for a reversal after the double top rejection at the horizontal green resistance. GBPUSD has retraced more than 61.8% of the last leg upwards. Further move to the downside will bring even more sellers and push price towards 1.18. Support is at 1.1950. This is the last line of defense for the near term bulls. The RSI is oversold and at least a bounce towards 1.2050-1.21 is justified. Our preferred scenario is for GBPUSD to bounce before continuing lower.