GBP/USD has been trading sideways at the price of 1.2661. Bearish flag is in creation and we expect more downside.
Red rectangle - horizontal support
White lines – Channel borders
GBP/USD did break of the upward channel in the background, which is sign of the underlying weakness on the GBP. We also saw the bearish flag in creation after the breakout of the channel, which is very positive sign of further wekaness on GBP. Key support is seen at the price of 1.2606. Resistance levels are seen at 1.2688 and 1.2700. Watch for selling opportunities on the break of the bearish flag.