GBP/USD's Short Term Falling Channel
Pair’s recommencement from 1.3711 is progressing. Still, the impulse is rather feeble. The cable is restrained in the short term falling channel. The recoil is considered as a correction. Trading is still neutral. Near term projection is slightly bearish. Following pivot points include: (S1) 1.3826; (P) 1.3877; (R1) 1.3939.
Breach of 1.3711 will prolong the drop from 1.4345 through resistance turned support of 1.3651. Firm support from 38.2% retracement of 1.1946 to 1.4345 at 1.3429 will retrain downside and lead to recoil.
Medium term forecast stays bullish if 1.3038 support stands. Increase from 1.1946 is a correction for the long term downtrend from the maximum of 2.1161. Another rally should align 38.2% retracement of 2.1161 to 1.1946 at 1.5466. The pair can’t surpass 55 month EMA. Breach of 1.3038 support will indicate ending of the lift from 1.1946, which will make prognosis bearish till repeat test of this level.