FX.co ★ GBP/USD drops within down channel

GBP/USD Breakout Attempt!

The GBP/USD pair was trading at 1.1097 at the time of writing. As you can see on the H1 chart, the rate dropped within a down-channel pattern. As long as it stays under the downtrend line, the price could resume its downside movement.

The downtrend line represents dynamic resistance. In the short term, it's trapped between the 1.0943 former low, which represents a downside obstacle, and the 1.1169 former high which represents an upside obstacle.

GBP/USD Trading Conclusion!

Staying below the downtrend line and dropping under 1.0943 could activate more declines and could bring new selling opportunities.

Jumping and stabilizing above the downtrend line may signal that the downside movement ended and that the rate could turn to the upside. Passing above 1.1169 could bring new buying opportunities.