FX.co - Technical Analysis of GBP/USD for June 16, 2021

2021-06-16T08:37:55

Relevance until2021-06-17

Overview :

The GBP/USD pair dropped sharply from the 1.4166 level towards 1.4115. Now, price is set at the 1.4141 to act as a daily pivot point.
It should be noted that the volatility is very high for that the price of the GBP/USD pair is still moving between 1.4141 and 1.4084 in the coming hours.
Furthermore, the price has been set below the strong resistance at the levels of 1.4166 and 1.4141 which coincide with the 61.8% and 50% Fibonacci retracement levels respectively.
Additionally, currently the price is in a bearish channel. According to the previous events, the pair is still in a downtrend. From this point, the GBP/USD pair is continuing in a bearish trend from the new resistance of 1.4166 and 1.4141.
Thereupon, the price spot of 1.4166 and 1.4141 remains a significant resistance zone. Therefore, the possibility that the Pound will have a downside momentum is rather convincing and the structure of the fall does not look corrective.
In order to indicate a bearish opportunity below 1.4166, it will be a good signal to sell below 1.4166 with the first target of 1.4084. It is equally important that it will call for downtrend in order to continue bearish trend towards 1.4030.
However, the stop loss should be located above the level of 1.4201.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade

Analytical expert

Mourad El Keddani

FX.co ★ Technical Analysis of GBP/USD for June 16, 2021