Friday, December 15, 2017

GBP/USD Renewed Its Downward Trend

It seems that the big depreciation of the British currency which began in November 2011 has not ended yet.

After the last drop from 7th October 2016 the GBP has slowly been rising and in the last eleven months it managed to recover slightly. Currently it is trading at 1.33 for 1 USD.

On the chart, however, one can clearly notice that the move to the upside is corrective for the moment and the pair is developing within a clearly defined slightly bullish sideways channel. After the pair reached a high at 1.36569 on 20th September 2017 it renewed its move to the downside and is now falling toward the support trend line of the channel around 1.3190 – 1.3160.

Once the pair reaches the trend line we should follow its development closely, as there are two scenarios – the pair will either continue moving within the channel and rally to the resistance trend line or there will be a new, significant drop of the GBP.