GBP is trading lower exactly what I expected yesterday. The price did test our first downward target at the level of 1.2330 and Is heading to test the second target at 1.2218.
Red rectangle – Important support level
Green rectangle – Important resistance levels
Purple falling line – Expected path
I found good rejection of the important resistance at 1.2390, which is sign that sellers are in control . My advice is to watch for selling opportunities due to rejection of the important resistance in the background. Additionally, I found that potential completion of the ABC type of upward correction. The downward target is set at the price of 1.2218.
MACD entered into negative territory below the zero line.