Today we would direct our attention to the GBP/USD currency pair. Lately we have seen the pair flirt with the resistance at 1.2973, which is consistent with the double top pattern happening near the level 1.3047.
In fact, that level is pretty interesting. If the GBP/USD manages to overcome its resistance levels and rises to (and above) 1.3047, then we would have a strong bullish movement. Still, that’s not very likely; the pair might fail to overcome the top and instead exhibit bearish movement and start decreasing. The RSI technical indicator seems to favor this latter scenario, expecting lower prices in the near future.
Based on this analysis, right now the best opportunity might be to hope for a bearish movement below our resistance at 1.2973 (which we can use as a stop-loss). As usual, we can use the support levels at 1.2744 and 1.2582 as targets.
As of the moment of this article’s publication the pair is trading around 1.2866 and the recommendation of most technical indicators based on the daily chart is to sell the pair.
