GBP/USD 4H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
The Cable trade was contained within the borders of a descending channel pattern for more than two months now. The outlook, however, is bullish, as the pair is supported by a strong cluster, represented by the 55 and 100-period SMAs, the weekly and the monthly PPs, just below the spot price. From here on we should see gains reach the 1.44 mark, where the channel's resistance line coincides with the monthly R1. On the other hand, if the immediate support fails to keep the pair from falling, another retest of the channel's lower boundary should then be at hand. Meanwhile, technical indicators are in favour of the bearish outcome, and 57% of traders are long the Sterling.

© Dukascopy Bank SA
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