GBP/USD could not break out below either of the two support trend lines it reaches and after rebounding from them it resumed its rally to the first resistance level around 1.3650.
In case it breaks out above that resistance the pair could possibly continue moving north to 1.3950 – 1.4000.
In the alternate scenario it could reach the resistance around 1.3650 and then it could fall back to the two support trend lines in red in an attempt to break out below them. In that case we could expect a drop to 1.3000 – 1.2950.
If we examine the chart we’ll notice that the trend channel looks like a flag that has been developing for a year and the drop to 1.3000 – 1.2950 appears inevitable – it’s not a matter of whether it will occur but of when it will occur.