GBPUSD has been in a bearish momentum since few weeks now. The trend is still bearish. Therefore, we will be looking at the bearish setup from the resistance level with other technical confluences. 

With the structure, market is still bearish forming lower lows and lower highs. The resistance is strong at the 1.1920 level as its a swing resistance which has liquidity at the place. After taking the short position from this level, our profit target would be at the support level down below.

The trendlines are in a channel. The descending channel has an upper and lower band. At the resistance level, we will have an upper trendline to be tapping at the resistance confluence. With the rejection at this upper band, we see a solid sell off towards the lower band.

The golden retracement area is in confluence with the resistance level at the price point of 1.1920. This confluence is the strong point we would be looking for a sell at.

The EMA 50 is slanting downwards to match the point of the resistance. Once the EMA 50 aligns with other technical factors, we will have another technical factor in confluence.

The RSI is formed for a bullish divergence. Once the the effect of the divergence is absorbed, market will tap the 50 level of neutrality. From there on wards, we will see the downwards slopping of the RSI which will be another catalyst for the push down.

GBPUSD shorts from 1.1920

Jul 14 2022