GBPUSD → A false breakout draws a pin bar. Sellers are winning

24 Mei

GBPUSD is forming a test of the resistance level at 1.271. There is a struggle for the level during the week and apparently the sellers are winning (pinbar is formed and consolidation under the level).



Technically, the downtrend was broken earlier, but there was no confirmation of the boundaries and confirmation of the trend change, so the area of 1.271 may become the zero point for the beginning of the correction. The currency pair on the background of fundamentally strong dollar may go down to 1.2664 with the subsequent breakout and fall to 1.257. Overall, the environment is unstable due to high inflation and regulators' decisions.

Resistance levels: 1.271, 1.28
Support levels: 1.2664, 1.257

I expect the beginning of correction to the support area, although the bearish channel was broken earlier, but there are no strong bulls in the market yet.

Regards R. Linda!