The GBP/USD pair has been showing a consistent downward trend, with recent price action providing valuable insights for traders. Let’s break down the key levels and potential scenarios to watch.
Recent Developments
- GBP/USD has extended its downside move from 1.3044 to a low of 1.2806
- The pair is currently trading within a falling price channel visible on the 4-hour chart
Bearish Scenario
As long as the price remains within the falling channel, we can expect the downward trend to continue. Key targets to watch:
- Next support: 1.2780
- Further downside target: 1.2710 area
Potential Bullish Reversal
While the current trend is bearish, traders should be prepared for a potential reversal. Here’s what to look for:
- Key level: Channel resistance (upper boundary of the falling channel)
- If price breaks above the channel: Watch for a move towards 1.2888
- Above 1.2888: This could signal the completion of the downward move from 1.3044
- Next bullish target: 1.2940 area
Conclusion
The GBP/USD pair is currently showing strong bearish momentum within a falling price channel. While the downtrend remains intact, traders should stay alert for any potential breakout above the channel resistance, which could signal a shift in the short-term trend.
Remember to always use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis.