GBP/USD may fall 30 - 45 pips

Our pivot point is at 1.2987.

Our preference

The downside prevails as long as 1.2987 is resistance.

Alternative scenario

The upside breakout of 1.2987, would call for 1.3012 and 1.3026.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 1.2980 and 1.2995). Finally, the GBP/USD has penetrated its lower Bollinger band (1.2962).

Supports and resistances

1.3026 **

1.3012 *

1.2987 **

1.2977

1.2962 last

1.2932

1.2917 **

1.2902 *

1.2888 **

Number of asterisks represents the strength of support and resistance levels.