Market Pulse: GBPUSD

The pair continues under negative pressure breaching 76.4% correction for the entire medium term bullish wave which started from 1.3653 to 1.7041, structured within the main descending channel over daily basis.

The 100 Days MA is protecting the current downside wave as seen on the secondary image over hourly basis. The pair managed to breach the support for the minor ascending channel forming a Flag pattern signaling the continuation of the downside move. Momentum indicators are currently neutral and we might witness a slight upside move reaching 1.4410-1.4450 before resuming the short and medium term trend downside move. The main target resides at 1.4160 –the support for the descending channel- opening the way towards the next target at the previous recorded bottom at 1.3653. Nonetheless, if the main support level for the bearish channel at 1.4160 holds against the downside move, trading will remain within the descending channel triggering an upside move towards the resistance for the channel to areas around 1.5000.

By: Yasir Mubarak
Main Technical Analyst