FX.co ★ Technical analysis of GBP/USD for May 30, 2016

Overview:

• The GBP/USD pair dropped sharply from the level of 1.4738 towards 1.4601. Today, the price is seen at the level of 1.4601 that will act as a daily pivot point. The GBP/USD pair is still moving between 1.4601 and 1.4760. Furthermore, the price is set below the strong resistance at the levels of 1.4738 and 1.4760. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend from the spots of 1.4738 and 1.4760.
• From this point, the GBP/USD pair is continuing with a bearish trend from the new resistance of 1.4738.
• The price spot of 1.4738 and 1.4760 remains a significant resistance zone.
• Therefore, a possibility that the GBP/USD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.4738, sell below 1.4738 with the first targets at 1.4535 and 1.4464.
• However, the stop loss should be located above the level of 1.4760.