GBPUSD is retesting the broken long-term downtrend channel
On the Monthly GBPUSD chart, we can see that the pair is testing a previously broken Andrew’s Pitchfork downtrend long-term channel resistance line 1.3680 and we need to see a confirmed bounce off it for the upside extension. This bounce on retest could lead to an uptrend reversal extension higher but 1.3680 level support must hold for an extension continuation.
On a Weekly chart, we can see a new uptrend Pitchfork channel formed and we just had a bounce off the Median line. We could see now an extension higher to the second channel half median line 1.4800. You can go long with the stop loss below 1.3780 to target 1.4300.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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