Like EUR/USD, GBP/USD ended below its daily best level as the US dollar appreciated slightly.
In the weekly time frame, the British pound is currently trading at 61.8% Fibonacci retracement ratio of 1.2718 and 2019 opening level 1.2739 as a result of the two-week price increase. Despite the recent increase in sales, prices are still likely to go up in the region.
The price of the GBP/USD pair in the daily timeframe is currently below the trend line resistance starting from a low of 1.1409. This is followed by another trend line resistance starting from a high of 1.3514, a 200-day SMA (orange – 1.2688), and resistance of 1.2769.
The four-hour price has crossed May’s opening level of 1.2583, with some pips below the Quasimodo resistance 1.2653. Meanwhile, if it breaks the opening level of May and goes down, it will be target 1.25. If it goes above 1.2653, 1.27 will be targeted.
Closing today below 1.2583 in the four-hour time frame will increase tomorrow’s price decline and sellers will enter the market. Tested below 1.26 / 1.2583 would be the right situation for conservative sellers to enter the market.
However, if the price does not decrease, then the price may move towards 1.27. This level is a psychological level and acts as a very strong resistance.