Wednesday, February 07, 2018

GBP/USD Is Headed For The Support Trend Line OF The Channel

GBP/USD continued developing within a perfect trend channel reaching a local high at 1.43452 and, without managing to reach 1.4350, formed a doji bar on the W1 time frame and an Adam and Adam double top on the D1 time frame, signaling for its impending depreciation.

This week that depreciation has become a fact and I think that the pair is headed for the support trend line of the channel, its target being around 1.3670 – 1.3650. If it breaks out below this support it is possible for the depreciation to continue toward the strong support on the W1 time frame around 1.3550 – 1.3500, which is marked on the chart with a blue rectangle.

Should the pair break out below that support it could keep depreciating to 1.3000 – 1.2950.

The alternative scenario is for a rebound from the same support and a renewal of the rally within the trend channel.