Technical analysis of GBP/USD for May 22, 2017

Overview: The GBP/USD pair faced strong resistance at the level of 1.2973 because the double top is set around the spot of 1.3047. Consequently, the strong resistance has already been formed at the level of 1.2973 and the pair is likely to trade around the spot of 1.2973 and 1.3047. However, if the pair fails to pass through the level of 1.3047, the market will indicate a bearish opportunity below the new strong resistance level of 1.3047. Moreover, the RSI starts signaling a downward trend which is still showing strength above the moving averages 100 and 50. Thus, the market is indicating a bearish opportunity below 1.2973, so it will be good to sell at 1.3047 with the first target at 1.2744. It will also call for a downtrend in order to continue towards 1.2582. The daily strong support is seen at 1.2582. On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.3075.

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