GBPUSD → A FB and a retest of 0.618 could send the price to 1.26

21 Jul 2023

GBPUSD forms a false breakdown of a strong resistance area. A downward correction is formed against the background of local strengthening of the dollar index

On the chart, the currency pair retests the key support line at 1.2848. A pre-breakdown consolidation is formed against the background of correction.
The price overcomes the area of 0.5 Fibo and is directed to test 0.618. If the currency pair breaks 1.28000, the correction format will turn into a change of trend and the price may fall to 1.26000 within the upward price range.
Regarding 1.2848 there are two possible scenarios, a false breakout with subsequent growth to 1.3000. Or breakout and price entry to 1.2848-1.26800. In this case our target will be the support.
MA-50 acts as resistance, while MA-200 is preparing to take a retest from the price

Resistance levels: 0.5 fibo, 1.2965
Support levels: 1.2848, 0.618 fibo.
I expect the formation of pre-breakdown consolidation and possible breakout with further price decline to 1.26800.

Regards R. Linda!