Pound Consolidating Near Long-Term Lows

GBP/USD: consolidating near 27-months low

• Williams Alligator bearish;
• ADX and DI bearish;
• RSI bearish.

The British pound is consolidating losses around 27-months low versus the US dollar. The recent bearish performance shows a second close of four-hour candlestick below a psychological round-figure mark of 1.2000 dollars per pound. On top of that, the four-hour timeframe is fully bearish, according to the technical setup below.               

Whipsaws towards Williams Alligator’s lines are still possible, and such an action might give a brilliant entry opportunity for the sell-highs trading strategy. All of the three lines are headed South with quite a significant distance between each other, pointing to a high volatility. The ADX and DI indicator shows a bearish sentiment with quite a strong momentum reflected by the mainline that is above the zero level. The RSI oscillator is in deeply bearish territory. Further weakness expected.                                                                       

Pivot points:

R1: 1.20160 (WA green line);

R2: 1.20793 (WA red line);

S1: 1.19241 (recent low);

S2: 1.18500 (round-figure extension).