In my post from last week regarding FX:GBPUSD, I mentioned my anticipation of a drop below the 1.25 support zone, along with an expectation for a continuation of the downtrend by 500 pips.
These expectations remain unchanged. Moreover, with recent inflation data released from the UK surpassing expectations, there's a possibility of a relief rally being triggered.
I plan to capitalize on this correction by initiating short trades, primarily focusing on levels above 1.25.
A deviation from this outlook would occur with a daily close above 1.2650. As previously stated, my medium-term target for GBPUSD is the 1.2 zone.
Good analysis. The identified resistance level seems solid as the price has been respecting it multiple times in the past. The descending trendline aligning with the resistance level is a good sign of bearish momentum. I suspect the price is below the Ichimoku cloud, which indicates potential bearish momentum coming to the market. Let's see how this plays out. I'll keep an eye on it.