Following the release of short-term downtrend channel (blue lines in h1), a powerful rally took place on the pair GBP/USD which is currently evolving in a neutral zone between the support at 1.6117 and resistance at 1.6175. The downward trend triggered earlier is not questioned at this time as shown by the new medium term bearish channel (purple lines). The upper band has been tested.

We advise to wait an exit of the range 1.6117/1.6175 to take position:

- Only short positions in case of return below 1.6117 that will mark the resumption of the downtrend. A new test of major support at 1.60 will be then expected.

- Long positions in case of breakout of 1.6175. That will mark the end of the downtrend. We will then expect a return on 1.6250 and 1.63 in extension.

GBP/USD 4h chart

The bearish trend has continued on the pair GBP/USD. The break of the support at 1.5837 gave us a new sell signal and the price is moving away from the lower limit of its medium term bearish channel (purple lines). The pair is currently testing the major daily support at 1.5730 (the break of this level in August 2012 caused a strong bullish rally).

A technical rebound could therefore occur towards the lower limit of the medium term downtrend channel that corresponds to the level of theresistance at 1.5837. This scenario would occur if an output of short-term bearish channel (black lines) occurs soon. However, it is advisable to trade only short positions as far as 1.5837 is resistance.

The break of the support at 1.5730 will give a new sell signal and the price should then move to the next support at 1.56. In case of return above 1.5837, we will be neutral between this level and 1.5895. A break of this level would give a buy signal and we will then expect a return on the psychological resistance at 1.60 (upper limit of the medium term bearish channel).

GBP/USD 1h chart

The pair GBP/USD resumed its downtrend on Friday. The sell signal was given to us by the break of 1.5828. Currently, the price is moving just below the daily support at 1.5730. During the week, further bearish movement is expected.

We recommend to trade only short positions as far as 1.5815 is resistance. This level is significant resistance in h1 (red dotted line on the h1 chart). The break of 1.57 will give a new sell signal and should allow the price to extend its downward movement to 1.56 and 1.55 in extension.

In case of return above 1.5815, we will be neutral between this level and 1.5895.

GBP/USD 1h chart

After making a pullback on the resistance at 1.5808, the pair GBP/USD resumed its downtrend and has broken its last lows. The break of 1.56 gave us a new sell signal and the price is currently testing the 1.55 psychological support. This level is a daily support and could led to a slight movement of correction for a pullback on 1.56. On the medium term, the last low allowed us to draw a parallel to our previous bearish channel (purple lines). The price is currently moving just below the lower band.

We continue to advise short positions as far as 1.57 is resistance. The bearish sentiment is reinforced by the presence of a bearish slant on the short term (brown line). Our next goal is now the major daily support at 1.53 which includes all lows of 2012.

In case of return above 1.57, we will be neutral between this level and 1.5808.

GBP/USD 1h chart

The pair GBP/USD has opened the week on a bearish gap and filled it yesterday. The price has since resumed its downtrend and is moving towards the psychological threshold at 1.50. On the short term, the pair is still evolving within its bearish channel (brown lines).

We continue to advise short positions as far as 1.54 is resistance. This level corresponds to the lower limit of the medium term bearish channel  (purple lines). 1.50 should be reached soon and the break of this level will give a new sell signal to 1.48.

In case of return above 1.54, we will be neutral between this level and the major resistance at 1.5538.

GBP/USD 1h chart

The pair GBP/USD has validated yesterday the breakout of the psychological support at 1.50 (new sell signal) and continues its bearish trend. The price is still moving within its medium term bearish channel (black lines).

We continue to advise short positions as far as 1.51 is resistance. The support at 1.48 should be tested soon. In case of breakout, a new sell signal will be given and we will then target the next support at 1.47.

In case of return above 1.51 (channel output validated), we will be neutral between this level and 1.53. This level corresponds to the lower limit of the former medium term downtrend channel (purple lines).

GBP/USD 1h chart

The pair GBP/USD has continued its correction and just went out of our neutral zone 1.5072/1.52 from the top (buy signal). This movement is led by a bullish slant on the short term (blue line). The pair is about to test the lower band of our medium term bearish channel (purple lines) in resistance.

We recommend for the moment to trade only long positions as far as 1.5072 is support. The break of 1.53 (break of the lower band) will give a new buy signal. The price should then continue its correction towards 1.5450 and 1.55 in extension.

In case of return below 1.5072, we will be neutral between this level and the psychological level at 1.50.

GBP/USD 1h chart

Earlier this week, the pair GBP/USD made ​​a pullback on the at 1.5075 but thereafter a strong bullish rally has occured yesterday. The price is back above the resistance at 1.52 and is about to test all its last highs at 1.5250. The price is also back above the lower limit of its medium term bearish channel (purple lines).

We continue to advise long positions as far as 1.5075 is support. The break of 1.5250 will give a new buy signal. The price would then continue its rebound towards 1.54 and 1.5450 in extension.

In case of return below 1.5075, we will be neutral between this level and the psychological level at 1.50.

GBP/USD 1h chart