The GBP/USD pair is at the support trend line of the channel that has been developing since the beginning of January 2017 and so far it is unclear whether it will be able to break out below it or not. Let’s see what the situation is on the smaller time frames:
On the daily time frames one can notice that before this test there has been a lengthly consolidation and then a sharp drop to test the support trend line.
On the H4 time frame we can see that the test of the trend line began on 2nd November 2017 and up until now this is the second attempt to break out below said trend line.
I think that if the pair succeeds in breaking out below the support trend line we could expect a drop of about 740 pips, i.e. a drop to 1.2300.
If the breakout is unsuccessful, I think we will see a rebound from the trend line and rally toward 1.3300 which will be its first target.