FX.co ★ Technical analysis of GBP/USD for February 26, 2018

Overview:

• The GBP/USD pair is still trading below the resistance of 1.4055. It will probably continue to move downwards from the level of 1.4055.
• Today, the first resistance level is seen at 1.4055 followed by 1.4123, while the daily support 1 is seen at 1.3901.
• Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.4055.
• So it will be good to sell at 1.4055 with the first target of 1.3986. It will also call for a downtrend in order to continue towards 1.3901.
• The strong daily support is seen at the 1.3901 level. According to the previous events, we expect the GBP/USD pair to trade between 1.4055 and 1.3901 in the coming hours. The price area of 1.4123 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.4123 is not broken.
• On the other hand, in case a reversal takes place and the GBP/USD pair breaks through the resistance level of 1.4123, then a stop loss should be placed at 1.4221.