Coronavirus disease (COVID-19) pandemic impacted on The GBP/USD pair since weeks. So, more and more analysts talk about the impact of the coronavirus on the financial markets. But, Coronavirus’s fear factor is stronger than Brexit, that explains the drop of the cable as investors wrestle with the double fears.
Technically, The GBP/USD pair faced strong resistances at the levels of 1.2048 because support had become resistance on March 18, 2020. Thus, the strong resistance has been already formed at the level of 1.2048 and the pair is likely to try to approach it in order to test it again. However, if the pair fails to pass through the level of 1.2048, the market will indicate a bearish opportunity below the new strong resistance level of 1.2048 (the level of 1.2048 coincides with a ratio of 61.8% Fibonacci). Moreover, the RSI starts signaling a downward trend, as the trend is still showing strength between the moving average (100) and (50). Hence, the market is indicating a bearish opportunity below 1.2048 so it will be good to sell at 1.2048 with the first target of 1.1676. It will also call for a downtrend in order to continue towards 1.1449. The daily strong support is seen at 1.1449. On the other hand, the stop loss should always be taken into account, for that it will be reasonable to set your stop loss at the level of 1.2206.