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Overview :
- The GBP/USD pair continues moving downwards from the level of 1.2219 this morning. Today, the first resistance level is currently seen at 1.2219, the price is moving in a bearish channel now.
- According to the previous events, we expect the GBP/USD pair to trade between 1.2219 and 1.2132.
- Therefore, there is a possibility that the GBP/USD pair will move downwards and the structure does not look corrective.
- The trend is still below the 100 EMA for that the bullish outlook remains the same as long as the 100 EMA is headed to the downside.
- From this point of view, the first resistance level is seen at 1.2219 followed by 1.2309, while daily support 1 is seen at 1.2164. Equally important, the RSI is still calling for a strong bearish market and the current price is below the moving average 100.
- So, the support stands at 1.2132, while daily resistance is found at 1.2219. Therefore, the market is likely to show signs of a bearish trend around the spot of 1.2219.
- In other words, sell orders are recommended below the spot of 1.2219 with the first target at the level of 1.2132 and continue towards 1.2100 in order to test the weekly support 2 on the M3 chart.
- On the other hand, if the GBP/USD pair fails to break through the weekly pivot point level of 1.2219 today, the market will move upwards continuing the development of the bullish trend to the level 1.2309 (double top).
Forecast :
The current price is seen at 1.2175 , which represents the key level today. The level of 1.2219 will act as the first resistance line. Hence, if the pair fails to pass through the level of 1.2219, the market will indicate a bearish opportunity below the strong resistance level of 1.2219. Sell deals are recommended below the level of 1.2219 with the first target at 1.2132. If the trend breaks the support level of 1.2132, the pair is likely to move downwards continuing the bearish trend development to the level 1.2100. However, the price spot of 1.2219 remains a significant resistance zone. Thus, the trend will probably be rebounded again from the double top as long as the level of 1.2309 is not broke.
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