GBP/USD rebounded from the support level at 1.6050, forming a Channel Down pattern on the 1H chart. The formation has 67% quality along with 58% magnitude in a 97-bar period.
The price dropped to the support level at 1.6066 after it had tested the eight-month high around 1.6300. The present bias on the 1H chart is bearish, while SMA200 is decreasing on the present chart. Pattern's highs matched with SMA indicator's line at 1.6197, then around 1.6176, which increases the reliability of the present trend. If the price decreases, bulls might focus their attention on the pattern support level at 1.6041. If the pair breaches this level, the initial target for short traders could be around 1.6038.
The pair touched the support level but has not increased to the resistance level yet. Pair's bias on the 4H chart is neutral, while on daily chart it gives bearish signals. If the price increases, the initial target for long investors could be at 1.6137, where the SMA200 indicator lies. If the price pierces this level, the second target might be around 1.6164, where the resistance level stands.