GBP/USD: downtrend intact

GBP/USD 1.2056 Downside Obstacle!

The GBP/USD pair is trading at 1.2116 at the time of writing. As you can see on the H1 chart, the rate retested the downtrend line which represents an upside obstacle and now it has turned to the downside.

As long as it stays under the downtrend line, the GBP/USD pair could extend its downside movement. Technically, the former low of 1.2056 represents a downside obstacle.

GBP/USD Trading Conclusion!

Dropping below 1.2056 activates more declines. This is seen as a selling opportunity.