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The GBPUSD is holding below the resistance level I mentioned last week.
The 1.3050/70 area is the intersection of the 2019 ascending channel as well as the trend line that extends from the November 2019 low.
The challenge for GBPUSD sellers this week has been that 1.2980 area, which has served as support so far this week.
At least that was the case through Tuesday’s session.
You can see how 1.2980 has been a factor since last October.
However, notice how GBPUSD is now trading below 1.2980 intraday.
The pair continues to come off that 1.3050/70 resistance area, which means my bearish bias is still intact.
I’ve favored shorts below the 1.3050/70 area the entire time.
If today’s session closes the day below 1.2980, we could finally see the GBPUSD trend lower toward that 1.2770 support level.
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Notice how 1.2770 supported the pair in October and November of last year.
But 1.2770 may only provide temporary relief.
In my opinion, the 1.2570 area is a more sensible short to intermediate target for the pound.
Keep in mind too that 1.2570 and 1.2770 are very near the 61.8% and 50% retracement levels of the 2019 range.
As for today, though, it’s going to come down to where GBPUSD closes in relation to that 1.2980 area.
A daily close below it would open the door to 1.2770.
On the flip side, a daily close back above 1.2980 would keep the area intact as support a while longer.