GBP/USD is expected to trade with a bearish bias. The pair recorded a succession of lower tops and lower bottoms since July 15, which confirms a negative outlook. The declining 50-period moving average is playing a resistance role and maintains the downside bias. Besides, the relative strength index remains below its neutrality area at 50 and lacks upward momentum. To conclude, as long as 140.30 holds on the upside, look for further drop toward 138.05 and even 13.40 in extension.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 138.05. A break below this target will move the pair further downwards to 137.40. The pivot point stands at 140.30. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 141.10 and the second one, at 142.45.
Resistance levels: 141.10, 142.45, 143.50
Support levels: 138.05, 136.40, 134.95
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