As you can see on the H4 chart, GBP/USD failed to stabilize above the up channel's upside line, resistance, signaling a false upside breakout and exhausted buyers in the short-term.
Technically, when the price reaches a resistance line it should drop again. The price has retested the upside line and now declines, a drop under the 1.3300 could signal a deeper drop. The channel's downside line is seen as a major support level, target if GBP/USD declines.
I believe that only another higher high, jumping above the 1.3400 level could invalidate a corrective phase.
- GBP/USD Trading Conclusion
Sell if the price reaches the 1.3290 psychological level and use 1.3200 as a first downside target.
Buy a breakout above the 1.3400 level with an immediate upside target at the 1.35 psychological level.
