GPBUSD has been forming a lower low and lower high and is in a bearish trend. We are looking to take a short from the 1.2720 and take it till the support level. This support will be out profit target. It should be noted that GBPUSD is still bullish on the higher time frames but this short position would only be on the retracement side.

The market is in a bearish flag pattern and has the potential to breakout sell from the trendline. 

The retracement level is in confluence with the resistance level which is the 61.8%.

EMA is slightly below the price action and the EMA 50 is ranging. We are anticipating another breakout from the EMA 50, towards the bearish side.

RSI is at 55. It needs to be either below the 50 level or dwell into the upper region of the over bought region where we can see the divergence of bearish form aligned with the technical analysis.

Looking to short GBPUSD from 1.2720

Jul 04 2023