GBP/USD 1H Chart: Channel Down

Since May 7, when GBP/USD was trading in proximity to 1.68, the Great Britain Pound has been generally ceding ground relative to the U.S. Dollar. As a result, there is a downward-sloping channel emerging on the hourly chart of GBP/USD that implies further extension of the dip.

Given that recently the currency pair has completed a bullish correction, the Sterling is expected to bounce off the resistance at 1.6561, created by the falling trend-line, 200-hour SMA and daily R1, and resume the decline. The sell-off will then be expected to fade near the lower edge of the pattern at 1.6415, which is the current location of the weekly S1 and daily S3 levels.