Hello traders! Today GBP/USD has reached and rejected a critical psychological resistance level at 1.3200. Price went slightly higher although it is important that hourly closing price stayed below this level. At the same time, the double top has been formed, considering the previous high printed at 1.3177.
Already price has started to move down after RSI formed a bearish divergence. The downside pressure is likely to remain and can result in a prie decline towards the 1.3055 support level which is confirmed by 2×61.8% Fibonacci retracement levels as can be seen on the chart.
This support also corresponds to the 200 Exponential Moving Average as well as the simple uptrend trendline. It might suggest that there is an 80-100 pips downside potential, while GBP/USD could test it within just 48 hours.
Of course, the bearish forecast can remain valid only as long as the price remains below the recently printed high at 1.3210. If the price will break higher, GBP/USD uptrend is highly likely to continue, potentially sending the price towards the next psychological resistance at 1.3300.
Bias: Strongly bearish while below 1.3210
Potential Resistance Zone: 1.3180 – 1.3200
Potential Targets: 1.3055
Have a profitable trading!