© Dukascopy Bank SA
There seems to be emerging a downward-sloping channel on the four-hour chart of GBP/USD. The Sterling has just confirmed the resistance at 1.62 (falling trend-line, 200-period SMA, weekly R1), and the current decline is thus likely to extend some 150 pips through the nearest pivot points (at 1.6031 and 1.5935). The negative outlook is also reinforced by the ubiquitously bearish technical indicators.
In the meantime, we should be vary of the demand at 1.5870, which is not only the Oct 15 low and a two-month down-trend, but it also proved to be a significant level in the last quarter of 2013.
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