GBPUSD Market Review

The market reached 1.30000 level. This is a very strong resistance level and we see that price could break and stay above it for a while. Also we have to pay attention to a bearish divergence which was formed by price, RSI and MACD. As you know it's a trend reversal signal. We should be ready for possible downward movement to MA50 or MA100 which are support lines. MACD histogram confirms this downward movement. DMI shows range market conditions and it tells us that we should not expect strong price movements. Based on these signals, we have more potential for downward movement. In order to get one more confirmation for this, it's better to wait when the market drops below 1.28000 support level. Also we should take into consideration other variant. What if the market returns above 1.30000 level and continues the up trend? We must be ready for this and it will be a signal for buying with profit target at 1.34000 resistance level. MACD will have to confirm this upward movement. ADX line of DMI indicator will have to rise above 20 level. If the market can move higher than the previous swing high, it will be an additional confirmation for the upward movement. As for price movements between 1.31500 and 1.28000 levels we must be careful with all trades and we should watch closely for price action near 1.30000 resistance level.