Overview:
- The market opened below the weekly pivot point. It continued to move downwards from the level of 1.4305 to the bottom around 1.4150. Today, the first resistance level is seen at 1.4248 followed by 1.4305, while daily support 1 is seen at 1.4090. The GBP/USD pair broke support which turned to strong support at 1.4248. Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains below the support (1.4248) which is expected to act as major support today. This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment. Amid the previous events, the GBP/USD pair is still moving between the levels of 1.4248 and 1.4090, so we expect a range of 158 pips in coming days. Therefore, the major resistance can be found at 1.4248 providing a clear signal to sell with a target seen at 1.4135. If the trend breaks the minor support at 1.4135, the pair will move upwards continuing the bearish trend development to the level of 1.4090 in order to test the daily support 2. Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 1.4248/1.4305 this week.
