12.08.201915:46 Forex Analysis & Reviews: GBP/USD 08.012.2019 -Strong resistance at the price of 1.2100 on the test

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GBPUSD has been trading upwards in past 10 hours but it is testing resistance at 1.2100. The short-term trend is still down so the zone around 1.2100 seems like good sell opportunity.

Green rectangle: Key resistance (1.2100)

Yellow rectangles – Support levels (1.2060-1.2040)

Red line – Resistance trend line

GBPUSD made the strong breakout of the bearish flag last week and it was normal to see rally today due to wide range bar from Friday. GBPUSD is in downward trend and selling is a good option. Stochastic oscillator is showing us the overbought condition and the flip down, which is sign good confirmation for further downward movements. Support levels are seen at the price of 1.2060 and 1.2040. Key resistance is seen at the price of 1.2100.

Trading recommendation:

According to current market conditions, my advice is to watch for selling opportunities and go with the direction of the overall trend. Targets are seen at the price of 1.2060 and 1.2040.

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