08.04.202218:29 Forex Analysis & Reviews: Technical analysis of GBP/USD for April 06, 2022

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Overview :

The GBP/USD pair can still form an descending impulse, it continues to drop downwards. The major resistance level is seen at 1.3059 which coincides with the ratio of 61.8% Fibonacci.

According to the main scenario, it may start forming correctional structures. Today, we foresee the price to move towards the level of 1.3030 and then reach a new minimum again around the price of 1.2981.

Please, note that the strong support stands at the level of 1.2981. If the price breaks the level of 1.2981, we expect potential testing of 1.2961.

The current descending structure implies that the market may reach the level of 1.2961. In this area, the trend is challenging a major support level.

The descending impulse is strong enough to sell below the resistance level of 1.3059 .Therefore, the price is expected to reach a low once again.

It is rather gainful to sell at 1.3059 with the targets at 1.2981 and 1.2961. So, it is recommended to place take profit at the price of 1.2961 as the first target today.

On the contrary, stop loss should be placed at the price of 1.3079 (above the daily resistance). The bullish outlook remains the same as long as the RSI indicator is pointing to the upside on the M30 chart.

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