Overview:

• Last week, the GBP/USD pair made an upside movement from 1.6860 to 1.6995, but the market has opened at the level of 1.6936 today. Also, it should be noted that the level of 1.6936 is representing the weekly resistance 1. In addition, the weekly resistance 1 is going to act as the strong resistance today. Equally important, the RSI has become negative in the daily frame. So, it calls for a new downward move because there is saturation in the area of 1.6940. Therefore, the price of GBP/USD pair is going to move between 1.6940 and 1.6860 (this level is coinciding with the ratio of 38.2% Fibonacci retracement levels in H1 chart). Moreover, the pair has already formed major resistance at the level of 1.6936. Besides, it should be noted that the price has started setting below this level since today. Consequently, the market will indicate the bearish opportunity at the level of 1.6940, with the first target at 1.6856, then the price is going to continue towards the second target at 1.6040 (the weekly pivot point). However, the best location for placing your stop loss should be set at 1.6950.