FX.co ★ Technical analysis of GBP/USD for May 30, 2017

Overview:

• The GBP/USD pair traded around the strong resistance at the spot of 1.2973 because the double top is set around the spot of 1.3047.
• Consequently, the strong resistance has already been formed at the level of 1.2973 and the pair is likely to trade around the spot of 1.2973 and 1.2744.
• However, if the pair fails to pass through the level of 1.3047, the market will indicate a bearish opportunity below the new strong resistance level of 1.2973.
• Moreover, the RSI starts signaling a downward trend which is still showing strength above the moving averages 100 and 50.
• Thus, the market is indicating a bearish opportunity below 1.2973, so it will be good to sell at 1.2973 with the first target at 1.2744.
• It will also call for a downtrend in order to continue towards 1.2582 in coming days. The daily strong support is seen at 1.2582.
• On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.2973.