Overview :

We expect the GBP/USD pair is keeping its bearish momentum bottomed at 1.2486. The bias remains bearish in the nearest term testing 1.2420. Immediate resistance is seen around 1.2578.

The daily pivot point also stands at 1.2578; for that the level of 1.2578 will act as a major resistance in coming hours. If the trend is not able to break that area, it could lead the price to the bearish zone in the short run testing 1.2420.

The GBP/USD pair reached a new minimum at the price of 1.2470. So, today the price may reach one more minimum around the spot of 1.2470. Today, the GBP/USD pair is challenging the psychological resistance at 1.2569 which coincides with the ratio of 23.68% Fibonacci.

Moreover, any downside pullback from the price of 1.2578 now is normal, because on the whole we remain bearish at present.

Thence, we confirm the bearish scenario. Right now, the pair will probably go down because a downward trend is still strong and the RSI indicator is still signaling that the trend is downward.

Accordingly, in small time frames the trend is still bearish as long as the level of 1.2578 is not broken. Thereupon, it would be wise to sell below the level of at 1.2578 with the primary target at 1.2420.

Otherwise, the breakdown of 1.2420 will allow the pair to go further up to the levels of 1.2400 and 1.2325. Then, the GBP/USD pair will continue towards the second target at 1.2325. Besides, is should be noted that all positions must be closed before the closing bell in Asian session.

However, stop loss has always been in consideration. Thus, it will be useful to set it above the pivot of 1.2676.