FX.co ★ GBP/USD drops as expected

GBP/USD Down Channel!

The currency pair extended its downside movement after failing to stay above the 1.3101 former low. It's trading at the 1.3010 level at the time of writing and it drops within a down channel pattern.

You knew from my previous analyses that GBP/USD could approach and reach fresh new lows if it stays below the downtrend line and if it drops below the 1.3101 downside obstacle.

GBP/USD Trading Conclusion!

The downtrend could resume as long as it stays below the downtrend line. The near-term major downside target is represented by the channel's downside line. Dropping below the 1.3101 downside obstacle represented a selling opportunity.