GBP/USD has been trading downwards. Strong bearish momentum is present.
According to the H4 time – frame, we found that sellers are in control and that there is the breakout of the bearish flag pattern in the background, which I sign of bearish continuation. Short-term resistance is seen at the price of 1.3107. Short term supports are seen at 1.2970 and 1.2900.
Trading recommendation: We are bearish on GBP from 1.3100 but we plan to add smaller position on the rally and hold it till potential test of 1.2970. Protective stop is placed at 1.3110.
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