GBPUSD is in a bearish short-term trend. GBPUSD is making lower lows and lower highs inside the bearish channel that was created after the top at 1.3747. Price is now trading very close to the channel boundary. This is important short-term resistance.
Resistance by the upper channel boundary is at 1.3533. Bulls need to break above the channel boundary in order to provide a bullish signal. A rejection at current levels is what we believe the more likely scenario. A rejection will re-confirm the bearish channel and push price lower towards 1.34.
GBPUSD is inside an expanding wedge pattern. The latest rejection could lead to the lower wedge boundary towards 1.30 and below December lows. Bulls have support at 1.3455 and 1.3390 where we find the 50% and 61.8% Fibonacci retracements of the rise from 1.30 to 1.3747. Breaking below these two levels will increase chances of a move towards the December lows and maybe lower.
