GBPUSD Daily Analysis – September 5, 2023

GBP/USD has broken below the 1.2547 support level and extended its downside move from 1.3141 to as low as 1.2527.

Since the price is currently within a falling price channel on the 4-hour chart, it is likely that the downside movement will continue. The next target for potential support is around the 1.2500 area.

The immediate resistance level to watch is located at 1.2640. A break above this level could potentially bring the price back towards the top of the price channel on the 4-hour chart.

The key resistance level that traders should monitor is at 1.2817. Only a break above this level would indicate that the downside movement has completed. In such a scenario, the next target for resistance would be around the 1.2995 level.

Traders should closely observe the price action in GBP/USD, paying attention to the behavior within the falling price channel, the immediate resistance at 1.2640, and the key resistance level at 1.2817. This will provide valuable insights into the potential continuation or reversal of the current price movement.