GBP/USD Resumes Selling Pressure as It Faces Rejection at 1.2300

Technical indicators:
Major Resistance Levels – 1.2800, 1.2900, 1.3000
Major Support Levels – 1.1900, 1.1800, 1.1700

GBP/USD Long-Term Analysis: Bearish
GBP/USD has resumed a downward move as it faces rejection at 1.2300. On two occasions buyers have retested level 1.2300 resistance zone but were repelled. On August 10 retest, the pair was resisted as Pound commenced selling pressure to the downside. On the downside, the pair will resume downtrend if price breaks below the moving average lines .The selling pressure may extend to the low of level 1.1759.

GBPUSD Indicator Analysis
The Pound is at level 43 of the Relative Strength Index for period 14. It indicates that the pair is in the downtrend zone and may further decline. The pair is below the 20% range of the daily stochastic. The Pound has fallen to the oversold region of the market. The selling pressure is likely to subside as buyers emerge in the oversold region.

What Is the Next Direction for GBP/USD?
On the 4-hour chart, the Pound is in a downward move as it faces rejection at 1.2300. Meanwhile, on the August 16 downtrend, a retraced candle body tested the 61.8 % Fibonacci retracement. The retracement suggests that the Pound will fall to level 1.618 Fibonacci extension or level 1.1862. From the price action, the bears are attempting to break the previous low at 1.2007 to resume the downtrend.

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