FX.co ★ Strategy of the day on GBP/USD

The spot rate is currently testing the intermediate support of its medium-term bearish channel at 1.5730 suggesting a rebound. However, a break of these levels will free a large potential and reach the lower limit of its channel at 1.5670.
Technical indicators provide sell signals, but until the support is not broken the assumption of a rebound is most likely. 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 support of its channel where we suggest 2 scenarios. The first one is the hypothesis of a rebound where we recommend a buy on the level of 1.5730 with the 1st objective at 1.5790 and then at 1.5810. A breakthrough of 1.5710 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means to sell the spot rate as soon as it is broken through its support of 1.5730 with the 1st objective at 1.5670 and then at 1.5650. A breakthrough of 1.5750 will invalidate this scenario.