FX.co ★ GBP/USD Intraday Technical Analysis

The spot rate has tested the upper limit of its medium bullish channel and declined. It is testing now the intermediate support of this one at 1.5680, suggesting a rebound. However, a break of these levels will enable the lower limit of its channel at 1.5620.
Technical indicators provide buy signals supporting the assumption of a rebound. Bollinger bands have stabilized showing a more regular volatility. In addition, the upper band strengthens the upper limit of its channel supporting the hypothesis of a violent movement in case of failure
The spot rate tests its support that is why we recommend 2 scenarios: the first one is the hypothesis of a rebound where we advise a buy on the level of 1.5680 with the 1st objective at 1.5740 and then at 1.5760. A breakthrough 1.5660 will invalidate this scenario. The second scenario is the hypothesis of a break of its support and here we recommend a “sell stop”. We suggest to sell the spot rate as soon as it has broken through its resistance of 1.5680 with the 1st objective at 1.5620 and then at 1.5600. A breakthrough 1.5700 will invalidate this scenario.