FX.co ★ GBP/USD intraday technical analysis

The spot rate approaches the intermediate resistance of its medium-term bearish channel at 1.5880 leading to acceleration. A break of this level will allow it to reach the upper limit of its channel at 1.5960.
Technical indicators provide buy signals and the rate evolves in oversell zone supporting the assumption of a break in the short term. Bollinger bands are much discarded as a result of a strong decline these days. Stabilization is expected in the short term.
The spot rate is currently testing the intermediate resistance of its channel, we suggest 2 scenarios. The first one is the hypothesis of a decline where we recommend a sell on the level of 1.5880 with the 1st objective at 1.5820 and then at 1.5800. A breakthrough of 1.5900 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy the spot rate as soon as it is broken through its resistance of 1.5880 with the 1st objective at 1.5940 and then at 1.5960. A breakthrough of 1.5860 will invalidate this scenario.