On D1, the market has almost reached the goals of the Double Top reversal pattern. The quotes are pushing off the resistance level that used to be a good support in December last year. That time, buyers managed to prevent a breakaway of 1.3170 downwards. Currently, we should expect a minor bullish correction to the broken border of the descending channel at 1.3180. From this level, the price is likely to bounce downwards and continue falling by the width of the channel. The aim of the decline is 1.2820. Now the quotes are clinging to the lower border of the long-term bearish channel, so the decline has somewhat slowed down. As soon as the bears break through 1.2995, the decline will speed up.
On H4, the pair is trading inside the Ichimoku Cloud, indicating a range. However, here as well the quotes pushed off the resistance level of 1.3225 several times. The RSI also confirms further falling: as soon as the pair reaches 70, the pair declines, while breakaways of 30 get ignored. This means sellers are quite strong. A deeper correction to the upper border of the descending channel at 1.3340 is not excluded.
Closing thoughts
Summing up, we should expect further falling of the pair. Now GBP/USD is pushing off the nearest resistance level, forming a reversal pattern on MN. In most cases, the quotes reach the low of the right shoulder at such instances. The general goal of the decline is 1.1950, and the nearest goals are 1.2820 and 1.2625. Only pressure from buyers and a breakaway of 1.3340 can slow down the decline and provoke the development of a lengthy bullish correction. In this case, the quotes can leave the borders of the descending channel.
On H4, the pair is trading inside the Ichimoku Cloud, indicating a range. However, here as well the quotes pushed off the resistance level of 1.3225 several times. The RSI also confirms further falling: as soon as the pair reaches 70, the pair declines, while breakaways of 30 get ignored. This means sellers are quite strong. A deeper correction to the upper border of the descending channel at 1.3340 is not excluded.
Closing thoughts
Summing up, we should expect further falling of the pair. Now GBP/USD is pushing off the nearest resistance level, forming a reversal pattern on MN. In most cases, the quotes reach the low of the right shoulder at such instances. The general goal of the decline is 1.1950, and the nearest goals are 1.2820 and 1.2625. Only pressure from buyers and a breakaway of 1.3340 can slow down the decline and provoke the development of a lengthy bullish correction. In this case, the quotes can leave the borders of the descending channel.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.