FX.co ★ GBP/USD further drop activated

GBP/USD Downside Breakout!

The GBP/USD pair plunged in the short term and now is trading at the 1.3501 level. I've told you in a previous webinar that GBP/USD could develop a larger downside movement if it drops below the 1.3722 level.

After escaping from the up channel, the price was somehow expected to drop. As you can see, GBP/USD plunged within a down channel, below the downtrend line. Now, it has dropped below the channel's downside line signaling more declines.

GBP/USD Prediction!

In the short term, GBP/USD could try to come back to test and retest the channel's downside line before resuming its drop. 1.3422 historical low could be used as a potential downside target.

You should know that GBP/USD could extend its downside movement as long as it stays below the channel's downside line or below the downtrend line despite temporary rebounds.