GBPUSD in depth

On the daily chart above, the pair is trading within a bearish channel over medium term basis, and after recently touching the channel’s support at the recorded low of 1.4230, the pair rushed to the upside though hit the retest level for the previously breached major support at 1.4780 which we beli eve represents the neckline for a bearish pattern targeting lower areas initially around 1.4000 and 1.3650.

Stochastic provides clear overbought signals with a negative crossover supporting the continuation of the current bearishness. Meanwhile, the 200 Days MA resides with the channel’s resistance and protects the medium term bearishness towards the aforesaid targets.
Therefore, we see that the pair will extend the downside move over short and medium term basis towards targets though stability above 1.4780 will lead the pair higher over short term basis targeting the descending channel’s resistance at 1.5345.

By: Yasir Mubarak
Main Technical Analyst