The GBP/USD pair faced a strong resistance at the level of 1.3441, while minor resistance is seen at 1.3387. Support is found at the levels of 1.3318 and 1.3253.
This resistance (1.3441) has been rejected two times confirming the veracity of a downtrend.
The pair is trading below its double top (1.3441). It is likely to trade in a lower range as long as it remains below the double top. Short positions are recommended with the first target at 1.3318. A break of that target will move the pair further downwards to 1.3253 (S2).
Also, it should be noted that a daily pivot point has already set at the level of 1.3318. Equally important, the GBP/USD pair is still moving around the key level at 1.3318, which represents a daily pivot in the H1 time frame at the moment.
Yesterday, the GBP/USD pair continued to move downwards from the level of 1.3441. The pair fell from the level of 1.3441 (this level of 1.3441 coincides with the double top) to the bottom around 1.3346.
In consequence, the GBP/USD pair broke support , which turned minor resistance at the level of 1.3387. The level of 1.3441 is expected to act as major support today.
From this point, we expect the GBP/USD pair to continue moving in the bearish trend from the resistance level of GBP/USD towards the target level of 1.3318.
If the pair succeeds in passing through the level of 1.3318, thus, the maket is indicating a bearish opportunity below the 1.3318 level so it will be a good sign to sell at 1.3318 with the second target of 1.3253. It will also call for a downtrend in order to continue towards 1.3195. The daily strong support is seen at 1.3195.
Notwithstanding, if a breakout happens at the support level of 1.3441, then this scenario may be invalidated. However, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the price of 1.3480.
The material has been provided by InstaForex Company – www.instaforex.com
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