Personally, I am getting skeptical chasing GBP/USD lower, despite breaking lower out of the long standing descending channel. For over a year, the Cable has been methodically moving lower in a descending channel. Last week the pair broke a bearish wedge that targets the 1.2650 level but are oversold via RSI. But more importantly it is closing in on a key level of support. GBP/USD had been in a descending wedge since the end of 2007. Back in December of 2020, the pair broke higher out of the wedge. However, the upside has been limited since then and was capped near the 1.4200 level. Back at the 1.2600 level (approximately) the Cable would be back testing this broken wedge trend line, which may offer a strong level of support for bulls for a counter trend long.
Chart Of The Day: GBP/USD
