GBPUSD (1H) - short term bearish bias
The latest rally seems to be running out of steam as a RSI divergence showed a loss of momentum in the bullish drive. A series of signs confirmed that sellers are taking control of the action. The price broke below the first major support in the form of trend line and moving averages. The ensuing bearish MA cross sealed the deal and put the cable under pressure. A drop below the immediate support of 1.2840 could trigger a broader sell-off towards 1.2600, which is the 38.2% Fibonacci retracement of the rally from the daily chart.
Key support: 1.2840
Key resistance: 1.3000
The latest rally seems to be running out of steam as a RSI divergence showed a loss of momentum in the bullish drive. A series of signs confirmed that sellers are taking control of the action. The price broke below the first major support in the form of trend line and moving averages. The ensuing bearish MA cross sealed the deal and put the cable under pressure. A drop below the immediate support of 1.2840 could trigger a broader sell-off towards 1.2600, which is the 38.2% Fibonacci retracement of the rally from the daily chart.
Key support: 1.2840
Key resistance: 1.3000