FX.co ★ GBP/USD analysis for July 20, 2023 - Downside objective reached and potential for the further drop

Technical analysis:

GBP/USD has been trading downside as I expected and the price has reached second downside objective at the price of 1.2980 but I see potential for the third objective to be in the play.

Due to the strong downside momentum and the breakout of the rising trend line in the background, I see potential for the further drop towards lower reference.

Downside objective is set at the price of 1.2850

Stochastic oscillator is showing fresh downside flip, which is another good sign for the further downside movement.

Key resistance is set at the price of 1.3125