GBP/USD has been trading downwards today. The price tested and rejected from the key resistance at 1.2746, which is strong sign of the reversal and new downward momentum on the GPB.

Yellow rectangle – Resistance (1.2746)

Blue rectangle – Support 1 (1.2653)

Gray rectangle – Support 2 (1.2562)

GBP/USD made potential double top formation and we found strong rejection of the resistance 1.2746, which is for us strong sign of further GBP weakness. Important support for the GBP is set at 1.2653 and the breakout of this level would confirm potential double top formation completion, which will bring us more downward movement. If you see the breakout of 1.2653, watch for second downward target at 1.2652. Key short term resistance is set at the price of 1.276. Watch for selling opportunities on the rallies.