Technical analysis of GBP/USD for June 08, 2020

Overview:

The GBP/USD pair has faced strong resistances at the levels of 1.2730. So, the strong resistance has been already formed at the level 1.2730. If the pair fails to pass through the level of 1.2730, the market will indicate a bearish opportunity below the new strong resistance (1.2730).

The GBP/USD pair continues to move downwards from the level of 1.2730. Amid the previous events, the pair is still in a downtrend, because the GBP/USD pair is trading in a bearish trend from the new resistance line of 1.2730 towards the first support level at 1.2603 in order to test it.

Today, the first support level is seen at 1.2603 followed by 1.2562 (the weekly pivot point), while weekly support 1 is found at 1.2458.

If the pair succeeds to pass through the level of 1.2603, the market will indicate a bearish opportunity below the level of 1.2603.

Forecast:

So, we expect the price to set below the strong resistance at the levels of 1.2730 and 1.2603; because the price is in a bearish channel now. The RSI starts signaling a downward trend. Consequently, the market is likely to show signs of a bearish trend. So, it will be good to sell (sell stop) below the level of 1.2730 with the first target at 1.2603 and further to 12565. If the GBP/USD pair is able to break out pivot point at 1.2562, the market will decline further to 1.2458 in coming days. However, if a breakout happens at the resistance level of 1.2750, then this scenario may be invalidated.

Source: Technical analysis of GBP/USD for June 08, 2020

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