**Entry:** Around 1.2810 **Targets:** Approximately 1.2700
**Technical Analysis:** GBP/USD is showing clear signs of bearish momentum on the daily chart. After failing to sustain above key resistance levels, the pair has formed a series of lower highs and lower lows, indicating a potential downtrend.
**Key Points:** 1. **Resistance Breakdown:** The recent failure to break above resistance has shifted sentiment towards the downside.
2. **Moving Averages:** The 50-day and 200-day moving averages are starting to converge, suggesting weakening bullish support.
3. **Volume Analysis:** A notable increase in selling volume has been observed on the recent pullbacks, indicating strong bearish interest.
**Trade Plan:** - **Entry:** Look to enter short positions around 1.2810. - **Stop-Loss:** Place stop-loss above recent swing highs to manage risk. - **Targets:** Target initial profit-taking around 1.2700, with potential for further downside if bearish momentum persists.
**Risk Management:** - **Stop-Loss Placement:** Essential to protect against potential reversal. - **Position Sizing:** Consider appropriate position sizing to align with your risk tolerance and account size.
**Disclaimer:** Trading involves risk and past performance is not indicative of future results. Always conduct your own research and consider your risk management strategies before entering any trade.
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