FX.co ★ GBP/USD analysis for July 21, 2023 - Second downside objectives has been reached, 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 1.2847. I still see potential for the further downside movement.

Due to the strong downside momentum and no major signs for the reversal, I see potential for the further drop towards next downside reference point.

Downside objective is set at the price of 1.2775

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

Key resistance is set at the price of 1.3125