Technical analysis of GBP/USD for July 04, 2018
The GBP/USD pair is still trading below the daily major resistance (1.3276). It will probably continue to move downwards from the level of 1.3276 to the bottom around 1.3191. Today, the first resistance level is seen at 1.3196 followed by 1.3276, while daily support 1 is seen at 1.3068. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.3068. So it will be good to sell at 1.3068 with the first target of 1.2988. It will also call for a downtrend in order to continue towards 1.2919 in coming hours. The strong daily support is seen at the 1.2919 level, which represents the double bottom on the H4 chart. According to the previous events, we expect the GBP/USD pair to trade between 1.3090 and 1.2919 in coming two days. The price area of 1.3276 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.3276 is not broken. On the contrary, in case a reversal takes place and the GBP/USD pair breaks through the resistance level of 1.3196, then a stop loss should be placed at 1.3276.