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GBP/USD: possibility of resumption of broader down-trend

Published 11/28/2014, 06:59 AM
Updated 07/07/2019, 08:10 AM

The overall trend is still down, particularly on the weekly chart. The dollar seems to be strengthening for fundamental reasons to do with America's abundant cheap energy resources. The pound is weakening on Brexit fears after David Cameron's immigration speech.


Zooming in we see on the 4hr chart that the exchange rate has fallen to the base of a rising channel where it currently finding support at 1.5690.


There is a possibility of a turn-around occuring at the present level at the base of the channel, however price action has not confirmed this and is continuing to press lower.


Given the strong mid-term bear-trend I see scope for a move lower, if we get a confirming breakdown out of the channel at 1.5660 the exchange rate would probably fall to support from the lower wedge-pattern border at 1.5630.
GBPUSD28

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