GBP/USD grows after the last downside movement but the bias remains bearish after escaping from the major ascending channel. I've told you in my analyses that the pair could develop a significant downside movement if it drops and stabilizes below the uptrend line.
The rate has found support around the 1.2677 level and now is trading higher at 1.2853. It could increase further to test and retest the uptrend line and maybe the 1.3027 static resistance before dropping again.
- GBP/USD Trading Tips & Conclusion
We'll have a great selling opportunity if GBP/USD drops below the former low, under the 1.2677 level. If this scenario happens, you can use 1.23 as a potential downside target.
Only an increase above 1.3143 level could invalidate the bearish scenario and could bring a buying opportunity.
