FX.co ★ GBP/USD Intraday Technical Analysis

The spot rate has bounced off the lower limit of its medium term bearish channel at 1.5490 and is testing now the upper limit of this one at 1.5660. A breakthrough this level will release a good potential and initiate a violent bullish trend.
Technical indicators do not provide clears signals but are approach overbuy zone supporting the assumption of a decline. Moreover, this resistance represents a rebound of 62% of the decline which was registered between July 27th and August 02th.
A decline is expected in the short term but most probable and less risky scenario is a break of this resistance. Taking this into account, we recommend making a "buy stop" and buy when the spot rate will break its resistance at 1.5660 with a target of 1.5720.