GBP/USD further drop activated

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GBP/USD Downside Breakout!

The GBP/USD pair plunged in the short term and now is trading at the 1.3501 level. I've told you in a previous webinar that GBP/USD could develop a larger downside movement if it drops below the 1.3722 level.

After escaping from the up channel, the price was somehow expected to drop. As you can see, GBP/USD plunged within a down channel, below the downtrend line. Now, it has dropped below the channel's downside line signaling more declines.

GBP/USD Prediction!

In the short term, GBP/USD could try to come back to test and retest the channel's downside line before resuming its drop. 1.3422 historical low could be used as a potential downside target.

You should know that GBP/USD could extend its downside movement as long as it stays below the channel's downside line or below the downtrend line despite temporary rebounds.

The material has been provided by InstaForex Company - www.instaforex.com

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