FX.co ★ GBP/USD analysis for May 04, 2017

Recently, the GBP/USD pair has been trading sideways at the price of 1.2885. According to the 30M time frame, I found that price is trading inside of the downward channel, which is a sign that sellers are in control. The price respected the upper diagonal of the downward channel, which is a sign that buying looks risky. My advice is to watch for potential selling opportunties. I epxect re-test of the previous swing low at 1.2845. If the price breaks the previous swing low, second target will be set at the price of 1.2785.

Resistance levels:

R1: 1.2900

R2: 1.2923

R3: 1.2950

Support levels:

S1: 1.2850

S2: 1.2835

S3: 1.2805

Trading recommendations for today: watch for potential selling opportunities.