GBPUSD Approaching the bottom of the Channel Down

The GBPUSD pair has been trading within a Channel Down pattern since the May 27 2022 High. The price is approaching the Lower Lows trend-line (bottom) of the pattern, which happens to be a 3.0 Fibonacci extension and chances of a short-term rebound are high. Potential targets first the 1D MA50 (blue trend-line) and the Lower Highs trend-line (top) of the Channel Down in extension. Keep in mind that only a 1D MA100 (green trend-line) break-out is capable of sustaining further uptrend. Until then, trading within the Channel Down is the go to on the short-term.

Keep in mind though that on the long-term we may be ahead of a strong bullish reversal as the RSI on the 1W time-frame has been on Higher Lows since May 16, while the actual price has been on Lower Lows, i.e. giving a Bullish Divergence.



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