GBP/USD has been trading downward as I expected yesterday. The support was found at the swing low 1.2287. I expect potential rally back to 20EMA on the 4h time-frame.
Yellow rectangle – Support levels
Red rectangle – Swing low acting like resistance
Rising purple line – Expected path
MACD oscillator is showing bullish divergence, which may cause GBP to rally.. Watch for potential long opportunities with the target at 1.2380. The GBP is still trading in the downward channel but the rally is likely to happen till end of the day. The breakout of the 1.2270 may confirm further downside and test of 1.2210.