GBPUSD - READY FOR ANOTHER FALL ?Symbol - GBPUSD
The GBPUSD is currently testing the resistance level within its downtrend, but the price lacks the momentum to break through this range. Anticipation of upcoming news could further reinforce the downward movement. On the daily chart, the price is also exhibiting a false breakdown at a relatively significant level, reinforcing the notion that the market remains within the selling zone. The upcoming Federal Reserve meeting is expected to maintain the current interest rate, but the key focus will be on Chairman Powell's speech. Should his remarks lean towards a hawkish stance, which seems the most probable scenario, the US dollar may strengthen, potentially exerting downward pressure on the GBP.
From a technical perspective, the most substantial price movements typically occur following false breakouts.
Resistance levels: 1.2490
Support levels: 1.2415, 1.2380
A retest of the trend resistance resulting in a false breakout, followed by consolidation below the resistance line, could lead to further downward momentum. A break below the support level at 1.2415 would likely trigger additional selling. In the absence of unexpected news, the currency pair may decline towards the 1.2240 level.
I will be looking to enter a short trade in the 1.2480 - 1.2520 range, with a stop loss at 1.2550 and a target of 1.2340.
