FX.co ★ Technical analysis of GBP/USD for March 15, 2023

Overview :

Yesterday, the GBP/USD pair dropped sharply from the level of 1.2083 towards 1.2009. Now, the price is set at 1.2056. On the M15 chart, the resistance of GBP/USD pair is seen at the level of 1.2083 and 1.2106.

It should be noted that volatility is very high for that the GBP/USD pair is still moving between 1.2083 and 1.2009 in coming hours.

Also, it should be noticed that resistance 1 is seen at the level of 1.2083 which coincides the daily pivot point.

So, we expect the price to set below the strong resistance at the levels of 1.2083; because the price is in a bearish channel now. The RSI starts signaling a downward trend. Consequently, the market is likely to show signs of a bearish trend.

Moreover, the price spot of 1.2083 remains a significant resistance zone. Therefore, there is a possibility that the GBP/USD pair will move downside and the structure of a fall does not look corrective. It will indicate the bearish opportunity below 1.2083, sell below 1.2083 with the first target at 1.2009 in order to test yesterday's bottom.

Additionally, if the GBP/USD pair is able to break out the bottom at 1.2009, the market will decline further to 1.1952 in order to test the weekly support 2.

However, it would also be sage to consider where to place a stop loss; this should be set above the second resistance of 1.2128.