FX.co ★ GBP/USD analysis for July 18, 2023 - Potential for the drop

Technical analysis:

GBP/USD has been trading upside this morniing but I found rejection of the key resistance at the price of 1.3105, which is good sign for the potential downside movement.

Due to the potential change in trend dynamic from bullish to bearish and the rejection of the resistance cluster, I see potential for the further drop towards lower references.

Downside objectives are set at the price of 1.3055 and 1.3000

RSI oscillator is showing bearish divergence, which is good confirmation for the downside movement.

Key resistance is set at the price of 1.3105