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GBPUSD Faces Downward Pressure: The GBP/USD pair recently retested the broken neckline of a double top pattern and bounced lower. This reinforces the bearish implications of the pattern, suggesting further decline in the coming sessions.
Support and Resistance:
- Support: 1.2540 (key support level)
- Resistance: 1.2690 (resistance level), 1.2700 (breach negates bearish bias)
Targets:
- Initial downside target: 1.2580 (break opens door for further decline)
- Further downside target: 1.2480
Confirmation of Downtrend: A break below 1.2580 would solidify the bearish trend, potentially leading to a drop towards 1.2480.
EMA50 Indicator: The 50-day Exponential Moving Average (EMA50) is currently acting as support for the downtrend.
Bullish Scenario: A breach above 1.2700 would invalidate the bearish outlook and suggest a potential return to the main uptrend.
Trading Range: The expected trading range for today is between 1.2540 (support) and 1.2690 (resistance).
Overall, the technical analysis favors a bearish bias for GBP/USD. The double top pattern retest and support from the EMA50 indicate a potential continuation of the downtrend. However, a break above 1.2700 could signal a reversal.