FX.co ★ GBP/USD: upside reversal needs confirmation

GBP/USD Down Channel!

The GBP/USD pair jumped higher after failing to come back towards new former lows signaling exhausted sellers. Now, the price challenges the downtrend line which is seen as an upside obstacle.

As long as it stays under this line, the price could drop again. The 1.2052 former high stands as an upside obstacle as well. On the downside, the 1.1933 immediate low represents a downside obstacle.

GBP/USD Trading Conclusion!

Staying below the downtrend line and dropping under 1.1933 could activate more declines.

A potential upside reversal and further growth could be activated if the rate jumps and stabilizes above the 1.2052 former high.