GBP/USD may fall 40 - 60 pips

1.3181 is our pivot point.

Our preference

The downside prevails as long as 1.3181 is resistance.

Alternative scenario

Above 1.3181, look for 1.3214 and 1.3234.

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 below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 1.3194 and 1.3202).

Supports and resistances

1.3234 **

1.3214 *

1.3181 **

1.3168

1.3150 last

1.3110

1.3090 **

1.3071 *

1.3051 **

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