GBP/USD is trading 0.57% lower to 1.2842 despite having closed above 1.2900 in yesterday’s session. The pair’s immediate support is at 1.2833 other supports are at 1.2800 and 1.2774. The intraday resistance is at 1.2872 another resistance is at 1.2920 area.
The SMA-21 is currently indicating a resistance area at 1.2909 and the SMA-50 is showing resistance at 1.3030. The mid-Bollinger band is at 1.2845 while the upper and lower Bollinger bands are at 1.3006 and 1.2684 respectively. The RSI is below neutral and appears to be favoring the bears at this time. The Weekly price pattern is strongly bearish while on the intraday and 4-hourly scale the bulls seem to be in retreat as well. Currently, the pair is good to sell on intraday bases for small profits. An ideal sell entry would be near 1.2860, the target would be between 40 to 50 pips. A tight stop-loss for this trade would be at or slightly above 1.29000 resistance area.
A clear direction will only set on a breakout above or below the current trading range (1.2820 – 1.2945). So far the bears appear to be in more control, however, bears need an intraday closing below 1.28200 to continue to take the pair further lower.
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