GBP/USD Technical Analysis: Turning bearish again, break below ascending trend-channel awaited
Our preference: long positions above 1.3060 with targets at 1.3120 & 1.3150 in extension.Alternative scenario: below 1.3060 look for further downside with 1.3025 & 1.2990 as targets.
• The pair had good two-way price moves since the beginning of this week and has been
oscillating in an ascending trend-channel formation on hourly charts.
• However, the fact that the pair remains well below important intraday moving averages –
50, 100 & 200-hour SMAs, points to increasing near-term selling bias.
• Meanwhile, technical indicators on hourly/daily charts have just started gaining negative
traction and add credence to the bearish outlook amid the recent Brexit chaos.
• A convincing break below the trend-channel support will confirm a near-term bearish
breakdown and accelerate the slide towards the key 1.30 psychological mark.