GBP/USD is expected to trade in lower range as the key resistance lies at 0.7020. The pair recorded lower tops and lower bottoms, which confirmed a negative outlook. The downward momentum is further reinforced by the declining 50-period moving average. The relative strength index is below its neutrality level at 50.
To conclude, as long as 0.7020 is not surpassed, a further drop to 0.6960 and even to 0.6945 seems more likely to occur.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6960. A break below this target will move the pair further downwards to 0.6945. The pivot point stands at 0.7020. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.7035 and the second one at 0.7055.
Resistance levels: 0.7035, 0.7055, and 0.7070
Support levels: 0.6960, 0.6945, and 0.6900
The material has been provided by InstaForex Company - www.instaforex.com
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