GBP/USD Deeper Drop or Reversal?
As you can see on the H1 chart, the GBP/USD pair dropped within a down-channel pattern. As long as it stays under the downtrend line, the price could extend its drop. 1.2425 today's low stands as a potential downside obstacle as the price increased after reaching this level.
After its massive drop, a temporary growth is natural. Technically, it remains to see how it will react after reaching the downtrend line which represents an upside obstacle.
GBP/USD Trading Conclusion!
The GBP/USD pair could drop towards fresh new lows if it stays under the downtrend line and if it drops below 1.2425. This scenario could bring selling opportunities.
Staying above the 1.2425 and jumping above the downtrend line may signal that the downside movement ended and that the price could develop an upside reversal.
