25.06.201803:02 Forex Analysis & Reviews: Technical analysis of GBP/USD for June 25, 2018

Long-term review

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Overview:

The GBP/USD pair continues to move downwards from the areas of 1.3271 and 1.3309. This week, the pair dropped from the level of 1.3271 to 1.3147 to close at 1.3255 last week. Today, resistance is seen at the levels of 1.3271 and 1.3309. So, we expect the price to set below the strong resistance at the levels of 1.3271 and 1.3309; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 1.3309 and 1.3057 in coming days. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.3309 which coincides with a ratio of 50% Fibonacci on the H1 chart. Furthermore, if the GBP/USD pair is able to break out the bottom at 1.3147, the market will decline further to 1.3099 (daily support 2). Moreover, the price will fall into a bearish trend in order to go further towards the strong support at 1.3057 to test it again. The level of 1.3057 will form a new double bottom. On the other hand, if the price closes above the strong resistance of 1.3309, the best location for a stop loss order is seen above 1.3350.

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