Red lines - bearish channel
GBPUSD is in a bearish trend. Price is making lower lows and lower highs inside the red downward sloping channel since the top at 1.3140. Price is now trading around 1.2255 with the RSI finally reaching oversold levels. Current market conditions justify a bounce higher. There is no sign of a reversal yet, but bears need to be cautious and avoid getting greedy. A bounce is justified and very possible from current levels. Even a bounce towards the upper channel boundary around 1.25 is possible. So traders need to be cautious.
