FX.co ★ GBP/USD Intraday Technical Analysis

The spot rate is currently testing the intermediate resistance of its medium-term bearish channel at 1.6070. It seems that it initiated a decline. However, a break of these levels will free a large potential and reach the upper limit of its channel at 1.6130.
Technical indicators provide buy signals but until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have stabilized showing a more regular volatility.
The spot rate is currently testing the intermediate resistance of its channel, we suggest 2 scenarios: the first one is the hypothesis of a decline where we recommend a sell on the level of 1.6070 with the 1st objective at 1.6010 and then at 1.5990. A breakthrough of 1.6090 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy the spot rate as soon as it is broken through its resistance of 1.6070 with the 1st objective at 1.6130 and then at 1.6150. A breakthrough of 1.6050 will invalidate this scenario.