FX.co ★ GBP/USD imminent upside reversal

GBP/USD sellers seem exhausted

The GBP/USD pair continues to stay near the downtrend line which stands as dynamic resistance, like an upside obstacle. It has failed to stabilize under the 1.3228 previous low and now it is about to reach and retest the downtrend line again.

GBP/USD failed to come back to test and retest the channel's downside line announcing that the price could be oversold and that the sellers could be exhausted.

GBP/USD trading conclusion

Staying near the downtrend line may signal that the GBP/USD could jump above it. An upside breakout could signal an upside reversal and could bring new buying opportunities.

On the other hand, staying below the downtrend line and dropping below the 1.3215 today's low could activate a further drop. The channel's downside line is seen as a major downside target.