GBP/USD price pattern has become strongly bearish especially after last week’s closing at 1.2788. The pair was hampered last week by a UK’s poor economic data. Currently, the pair is trading slightly higher at 1.2833 with immediate support at 1.2800 other supports are present at 1.255 and 1.2522 levels. The intraday resistance is at 1.2830 another resistance is at 1.2855 level.

The RSI has moved lower the neutral zone and appears to be going further deep in the bearish zone. The MACD is below zero and the Bollinger band indicates a move until 1.2720. The SMA-21 indicates resistance at 1.3128 and the SMA-50 is indicating resistance at 1.2971. Based on the current price pattern the pair appears to be strong bearish and favors selling entries. A reasonable entry level would be near 1.2850 while keeping a target at 1.2770. A tight stop-loss for this trade would be just above the 1.2890 level.

Bulls need a price action above 1.2870 to improve the chances of a further bull run. On the downside, closing below 1.2770 is likely to accelerate the downtrend.


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By LCMS Traders FX Analysis Team

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