GBPUSD Daily Analysis – January 4, 2017

GBPUSD broke below 1.2202 support, indicating that the downtrend from 1.2774 has resumed. Resistance is at the top of the price channel on 4-hour chart. As long as the channel resistance holds, the downtrend could be expected to continue, and next target would be at 1.2000 area. Only a clear break above the channel resistance could signal completion of the downtrend.

gbpusd chart