GENREAL OVERVIEW: The path of the pair is side d towards the downside . The pair came into the week with the support test at a familiar area around the 1.3674 psychological level. This instance, however sellers push through that support as a really strong US dollar took over. The bears are set towards the south side . The pair is capped by the downtrend side .The pair is finally settled around 35-40 pips off daily swings high and opened with the modest bearish gap on the first day of new trending week. The market is making the negative momentum in the market the bears are giving their depreciating moves in the market . The current market level is 1.3674. The chart is start approaching the bears to make their flow towards the downside.
REASON & ANALYSIS: The technical view of the market we can see that market . The pair might then accelerate the slide towards the 1.3500 mark before eventually dropping the next major support level 1.3500-30 region. The pair is making lower lows and higher lows in the market. The bears are showing their negative volatility in the market . The market is making the descending line suggest us for sell. The GBP/USD risks falling to the falling to the 200-days SMA below all EMA lines. On the 4 hourly chart market is making the downward line and making swings towards the south side. The bearish traders and pave the way for the additional weakness for pair . The pair has support level is 1.2839 followed by 1.2781 and resistance is 1.3840 followed by 1.3900
The RSI is below 33.50 the 50 levels which is favoring the bears. A bearish crossover on MACD indicator is showing the weakness in the pair.
OUR RECOMMENDATION: Based on the chart and studies above we would suggest that go for sell at 1.3675 target is 1.3500 stop loss at 1.3900.
