Technical analysis of GBP/USD for August 08, 2018
The GBP/USD pair continues to move downwards from the areas of 1.3036 (which coincides with a ratio of 23.6% Fibonacci on the H4 chart) and 1.2969. Yesterday, the pair dropped from the level of 1.3036 to 1.2902. Today, resistance is seen at the levels of 1.2969 and 1.3036. So, we expect the price to set below the strong resistance at the levels of 1.2969 and 1.3036; because the price is in a bearish channel now.
Amid the previous events, the price is still moving between the levels of 1.2969 and 1.2829. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.2969. Furthermore, if the GBP/USD pair is able to break out the bottom at 1.2902, the market will decline further to 1.2829 (daily support 1). hence, the price will fall into a bearish trend in order to go further towards the strong support at 1.2829 to test it again. The level of 1.2768 will form a new double bottom.
On the other hand, if the price closes above the strong resistance of 1.3036, the best location for a stop loss order is seen above 1.3169.