Trade of The Day – GBP/USD

Facts:

• GBPUSD pulled back from the key resistance at 1.3442
• The pair has been trading in a downward trend from the end of January

Recommendation: 

Trade: Short position on GBPUSD at market price

Target: 1.3265, 1.3140

Stop: 1.3485

Opinion: 

GBPUSD has been trading in a downward trend recently. Looking at the H4 interval, we can see that the pair drew a local upward correction but bulls did not manage to break above the key resistance at 1.3442, marked with the upper limit of the 1:1 structure and 100-period moving average. According to the Overbalance methodology, as long as the price sits below the aforementioned resistance, the main sentiment remains bearish.Taking this into account, one may expect the pair to continue to move lower. We recommend going short GBPUSD at market price with two targets: 1.3265 and 1.3140. We also recommend placing a stop loss at 1.3485. Source: xStation5