Overview

The trend of GBP/USD pair movement was controversial as it took place in the downtrend channel in the H4 chart.

Due to the previous events, the price is still traded between the levels of 1.2289 and 1.2016. So it is recommended to be careful while making deals in these levels because the prices of 1.2289 and 1.2016 are representing the resistance and support respectively.

It is necessary to wait till the downtrend channel is passed through. Then the market will probably show the signs of a bearish market.

We agree that a major resistance is set at the point of 1.2289.

If the pair fails to pass through the level of 1.2289, the market will indicate a bearish opportunity below the strong resistance level of 1.2289.

Note that sellers are asking for a high price. As well as the trend is still calling for a strong bearish market from the spot of 1.2289.

In this regard, sell deals are recommended lower than the 1.2289 level with the first target at 1.2143. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.2016.

However, stop loss has always been in consideration thus it will be useful to set it above the last double top at the level of 1.2350.