GbpUsd could drop to 1.23

Since the beginning of December last year, GBPUSD pair has been trading within a range bounded by 1.25 and 1.28.

In early March, the pair experienced a break above the upper range boundary. However, this break ultimately turned out to be false.

After returning to the familiar range, the pair formed a significant bearish engulfing pattern on March 21st. Following a few days of consolidation, it is currently trading back at support.

Considering that pairs tend to break on the opposite side after a false break, coupled with the significant bearish movement on March 21st, I anticipate the next move will be a break of support.

In conclusion, I am looking to sell rallies in anticipation of this break, with a target around 1.23.