Overview:
- The GBP/USD pair was trading around the area of 1.3047 - 1.3159 a week ago. Today, the level of 1.3103 represents a weekly pivot point in the H1 time frame. The pair has already formed minor resistance at 1.3159 and the strong resistance is seen at the level of 1.3239 because it represents the weekly resistance 1. So, major resistance is seen at 1.3239, while immediate support is found at 1.3047. If the pair closes below the weekly pivot point of 1.3103, the GBP/USD pair may resume it movement to 1.3047 to test the weekly support 1. From this point, we expect the GBP/USD pair to move between the levels of 1.3103 and 1.3047. Equally important, the RSI is still calling for a strong bearish market, but the current price should be crossed the moving average 100 from underneath. As a result, sell below the weekly pivot point of 1.3103 with targets at 1.3047 and 1.2977 in order to form a double bottom. On the other hand, 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 1.3159.
