Overview:
- The GBP/USD pair was trading around the area of 1.4487 a week ago. Today, the level of 1.4487 represents a weekly pivot point in the H1 time frame. The pair has already formed minor resistance at 1.4578 and the strong resistance is seen at the level of 1.4607 because it represents the weekly resistance 1. So, major resistance is seen at 1.4607, while immediate support is found at 1.4478. If the pair closes below the weekly pivot point of 1.4478, the GBP/USD pair may resume it movement to 1.4379 to test the weekly support 1. From this point, we expect the GBP/USD pair to move between the levels of 1.4607 and 1.4379. Equally important, the RSI is still calling for a strong bearish market as well as the current price is also below the moving average 100. As a result, sell below the weekly pivot point of 1.4487 with targets at 1.4379 and 1.4350 in order to form a double bottom. Nevertheless, stop loss should always be taken into account, accordingly, it will be of beneficial to set the stop loss above the last bullish wave at the level of 1.4625.
Weekly technical levels:
- R3: 1.4835
- R2: 1.4706
- R1: 1.4607
- PP: 1.4478
- S1: 1.4379
- S2: 1.4250
- S3: 1.4151
