FX.co ★ Technical analysis of GBP/USD for May 24, 2023

The GBP/USD pair continues to move downwards from the level of 1.2489. Yesterday, the pair dropped from the level of 1.2489 (this level of 1.2489 coincides with the ratio of 38.2% Fibonacci) to the bottom around 1.2372. However, the trend rebounded from the bottom of 1.2372 to close at 1.2417.

Today, the first resistance level is seen at 0.9965 followed by 1.2525 (the weekly pivot point), while daily support 1 is found at 1.2372.

Also, the level of 1.2525 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 1.2525 towards the first support level at 1.2372 in order to test it.

If the pair succeeds to pass through the level of 1.2372, the market will indicate a bearish opportunity below the level of 1.2372.

Moreover, the price spot of 1.2525 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 1.2525, sell below 1.2525 or 1.2424 with the first target at 1.2372 in order to test yesterday's bottom.

Additionally, if the GBP/USD pair is able to break out the bottom at 1.2372, the market will decline further to 1.2300 in order to test the weekly support 2. Also, it should be noticed that support 1 is seen at the level of 1.2300.

Thus, the market is indicating a bearish opportunity below the above-mentioned support levels, for that the bullish outlook remains the same as long.

On the other hand, if a breakout happens at the resistance level of 1.0014, then this scenario may be invalidated.