I'm spotting a volume price anomaly on yesterday. Why an anomaly? Because we got a wide body candle with lower volume, comparing to the last three days. So we might get a bounce to the upside very soon.
The GBPUSD stays below the 1.3000 level, but it has been very volatile around that level, without taking a clear direction. Below the 1.2924 level, the pair could drop to the 1.2800 level, which has acted as support in the past.
The GBPUSD has completed a double top formation on the daily chart, from the 200 day EMA, around the 1.3224 level. The neckline or confirmation line of the double top pattern is at the 1.2917 level, which was broken today to the downside by the GBPUSD. If the price continues falling, then the low at the 1.2785 zone may act as support. A longer term support is at the 1.2662 low. On the other hand, if the price goes back above the 1.2917 level, its next resistance could be the 200 day EMA, around the 1.3224 level. Another possible scenario is that the price may consolidate around the 1.2917 level without taking a clear direction.
It did it! The Pound confirms the double top formation at the 200 day EMA and drops to the 1.2800 level, beware now of the pullback. The 1.2900 level may act as resistance, but if it continues falling, the low at the 1.2660 level could act as support.