GBPUSD Technical Analysis – Pair in a downtrend and the downtrend looks like its getting stronger and steeper as price is now downtrending within the red channel.
Nevertheless at this level, near the outer trendline (TR4) of the major channel, we will need to observe whether there will be a retracement from this zone.
At the moment, with the US dollar getting a boost from the Fed rate hike and the UK still mulling over their next hike which might only be coming in 2017, there is little reason for the Pound bulls to show their horns yet. We might some retracements from these levels but at the moment it hasn’t happened yet.
Downside support seen at 1.46. We need to see this pair taking out 1.49 and 1.50 before we might want to give the bullish camp a serious look.
Happy trading and good luck!