The GBPUSD draws negative formation - Analysis - 07-12-2022

The GBPUSD pair trades negatively since yesterday’s evening to test the key support 1.2130, and by taking a deeper look at the chart, we find that the price forms double top pattern that might push the price to exit the minor bullish channel and turn to decline on the intraday basis, while the technical indicators provide positive signals that might assist to push the price to resume the bullish trend again.

Therefore, the contradiction between the technical factors makes us prefer to stay aside until we get clearer signal for the next trend, noting that breaking 1.2095 will confirm turning to decline and achieve negative targets that start at 1.2025 and extend to 1.1915, while breaching 1.2225 will stop the current negative pressure and push the price to resume that bullish trend that targets 1.2345 followed by 1.2400 mainly.

The expected trading range for today is between 1.2050 support and 1.2230 resistance.

The expected trend for today: Neutral