Review and dynamics
Due to the strong pressure from fundamental factors, it is unlikely that the Pound will rise in the market. The pair GBP/USD fell by 16% declining from the level of 1.5000 after the decision of the British people to leave the EU. The pair fell below the 15-year-lows, losing over 800 points.
Downtrend dominates in the market. Expectations that on Thursday the decision to decrease interest rate will be taken by the Bank of England (13:00 GMT+2), increases bearish trend.
After significant decline caused by the results of the Referendum, since the end of June, a descending channel has been formed on 4-hour chart with the lower limit at the level of 1.2600 and the upper limit at 1.3100.
Technical indicators and fundamental factors show that the decline in the pair will continue. If the price rises above the level of 1.3230 (lows of June), the pair may undergo upward correction to 1.3650 (lows of 2009 and 2001).
Support levels: 1.2800, 1.2700 and 1.2600.
Resistance levels: 1.3230, 1.3430, 1.3500, 1.3600, 1.3670, 1.3700, 1.3800 and 1.3860.
Sell on the market. Stop-Loss: 1.2950. Take-Profit: 1.2800, 1.2700 and 1.2600.
Buy Stop: 1.3040. Stop-Loss: 1.2980. Take-Profit: 1.3100, 1.3230, 1.3430, 1.3600, 1.3670, 1.3700, 1.3800 and 1.3860.
At the 31-year lows
In the descending channel