I have analyzed the current market trend of GBP/USD and noticed a bearish pattern. The currency pair is currently trading at 1.2840 and is in the 3rd wave with a flag pattern in play. The MACD indicator signals a downward trend. If the current support level is broken, we can expect a continuation towards the ATR at 1.2764.
The overall target is the S6 at 1.2530. However, for this to happen, USDX needs to continue moving up. Therefore, it is important to keep an eye on the USDX for direction. The average daily true range (ATR) for the pair is 99 pips per day, with a 90-day average of 94 pips per day. Currently, USDX is moving up.
