Flat on the GBP/USD - anyone seeing things differently?

The British pound came under pressure on Tuesday after failing to sustain gains beyond the H4 trendline resistance extended from the high 1.3657. The pair effortlessly cleared the 1.32 handle as well as the H4 mid-level support 1.3150, and concluded the day mildly paring gains just ahead of the 1.31 band/H4 trendline support etched from the low 1.3027.

The tone over on the bigger picture remains bearish for the time being. Weekly bears recently established reasonably firm resistance from 1.3301, with little support seen to the downside. In addition to this, daily action produced a strong-looking bearish candle during yesterday’s movement, consequently engulfing two day’s worth of gains. The next downside target, however, is seen close by at 1.3058-1.2979: a support area which happens to merge beautifully with a trendline support taken from the low 1.2108.

Suggestions: Although weekly structure indicates further selling could be on the cards, shorting this unit on either the H4 or daily timeframes would be a challenge, given neighboring supports! On account of this, neither a long nor short seems attractive right now.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: Flat (stop loss: N/A).