GBP/USD has broken below the rising price channel on the 4-hour chart, indicating that the uptrend from 1.2664 has likely ended at 1.3265.
Current Outlook
- Downside Momentum:
- The pair is now trading below a falling trend line on the 4-hour chart.
- As long as this trend line resistance holds, the downward move from 1.3265 is expected to continue, with the next target around 1.3060.
- Potential Reversal:
- On the upside, if the price breaks above the trend line resistance, it would suggest that the short-term downtrend from 1.3265 has ended at 1.3109.
- In this scenario, another rise towards the 1.3265 high could be on the cards.
Conclusion
GBP/USD is currently in a downward trend after breaking key support levels. As long as it remains below the falling trend line, further declines toward 1.3060 are likely. However, a break above this resistance could signal a potential reversal, leading to a retest of the 1.3265 high. Traders should monitor these levels closely to gauge the pair’s next move.