Red lines- bearish channel
GBPUSD is trading around 1.2178. Price earlier today made a high around 1.2287 just above the upper channel boundary, but the bullish momentum is not strong enough for price to break the bearish channel. On the contrary, price action today shows us a bearish rejection as price remains inside the downward sloping channel. Bulls attempted to provide a break out signal but so far they fail. Price formed a lower high around 1.2287 and is now more than 100 pips lower. Price got rejected at the resistance of the upper channel boundary. Short-term support is found at recent low at 1.2088. A break below this level will open the way for a deeper decline to new lows towards 1.19. As long as price remains below 1.2287, bears will remain in full control of the trend.
