FX.co ★ GBP/USD Intraday Technical Analysis

The spot rate is currently testing the lower limit of its medium-term bearish channel at 1.6090 suggesting a decline. However, a break of these levels will free a large potential and initiate a more violent bearish channel.

Technical indicators do not provide clear signals but until the support is not broken, the assumption of a rebound is most likely. Bollinger bands have greatly tightened in recent days showing a decline in volatility and the imminence of a violent movement.

The spot rate is currently testing the lower limit of its channel and we suggest 2 scenarios: the first one is the hypothesis of a rebound where we recommend a buy at the level of 1.6090 with the 1st objective at 1.6150 and then at 1.6170. A breakthrough of 1.6070 will invalidate this scenario. The second scenario is a break of its support where we advise a “sell stop” which means selling the spot rate as soon as it is broken through its support of 1.6090 with the 1st objective at 1.6030 and then at 1.6010. A breakthrough of 1.6110 will invalidate this scenario.