The GBP/USD chart is currently displaying a bearish momentum as it trades below the bearish Ichimoku cloud. This indicates a potential for further downward movement. The first support level at 1.185 is significant as it represents a swing low support, while the intermediate support at 1.1764 is notable due to overlap support and the 50% Fibonacci Retracement. On the resistance side, the first resistance at 1.2304 is important as a pullback resistance, and the second resistance at 1.2617 also acts as a pullback resistance.
Recommended Trade Directions:
1. Short Position:
Traders may consider opening a short position if the GBP/USD pair breaks below the first support level at 1.185. This could signal a continuation of the bearish momentum, potentially targeting lower support levels.
2. Long Position:
Alternatively, traders might consider opening a long position if the GBP/USD pair successfully bounces off the first support level at 1.185 and starts to move higher. However, caution should be exercised near the resistance levels at 1.2304 and 1.2617, as they could potentially impede further upward movement.
It is important to note that trading decisions should be made based on individual analysis, risk tolerance, and market conditions. Traders should also implement appropriate risk management strategies, such as setting stop-loss orders and closely monitoring market developments.