Technical analysis on GBP/USD for September 21, 2023
The market opened below the weekly pivot point (1.2354). It continued to move downwards from the level of 1.2354 to the bottom around 1.2235. But, the trend rebounded from the bottom of 1.2253 to set around the area of 1.2290.
Today, the first resistance level is seen at 1.2354 followed by 1.2390, while daily support 1 is seen at 1.2235.
The GBP/USD pair broke support which turned to strong resistance at 1.2354. Right now, the pair is trading below this level. It is likely to trade in a lower range as long as it remains below the resistance (1.2354) which is expected to act as major resistance today.
This would suggest a bearish market because the moving average (100) is still in a negative area and does not show any signs of a trend reversal at the moment.
Amid the previous events, the GBP/USD pair is still moving between the levels of 1.2354 and 1.2200, so we expect a range of 154 pips in coming days.
Therefore, the major resistance can be found at 1.2354 providing a clear signal to sell with a target seen at 1.2235. If the trend breaks the minor support at 1.2235, the pair will move downwards continuing the bearish trend development to the level of 1.2200 in order to test the daily support 2.
Overall, we still prefer the bearish scenario which suggests that the pair will stay below the zone of 1.2354. this week.
Currently, the price is in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.
The bias remains bearish in the nearest term testing 1.2235 and 1.2200. Immediate resistance is seen around 1.2354 levels, which coincides with the weekly pivot.
Moreover, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.2354. So it will be good to sell at 1.2235 with the first target of 1.2200.
It will also call for a downtrend in order to continue towards 1.2175. The strong weekly support is seen at 1.2175. However, if a breakout happens at the resistance level of 1.2353, then this scenario may be invalidated.
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