GBP has been trading downwards as we expected. The price tested the level of 1.2665. We are expecting more downside on GBP due to breakout of the upward channel.
White line – broken upward channel
Yellow rectangle - Support 1
Red rectangle– Support 2
The breakout of the upward channel did set the tone for the day and potentially marked more downside. I also found the 3hour balance after the breakout, which was consolidation after the breakout. Support levels are seen at the price of 1.2650 and 1.2605. Stochastic made new momentum down, which is another confirmation of the underlying weakness on GBP. Key resistance is seen at the price of 1.2745.
