The price action of the GBPUSD recently broke down below the lower limit of the ascending channel, which signifies the likely beginning of a new downtrend. Afterwards, it rebounded from the 23.6 per cent Fibonacci retracement level at 1.37347 and established a throwback to the channel from below. This behaviour of the price action corroborates the expectations of a trend reversal.
Presently, the price action is probing the 38.2 per cent Fibonacci at 1.36727, which converges with the 200-day MA (in orange). If it manages to penetrate below the two, the price action would then likely head towards the 61.8 per cent Fibonacci at 1.35724.
Conversely, a rebound from the 38.2 per cent Fibonacci would likely be followed by a throwback to the 23.6 per cent Fibonacci from below before the broader downtrend can be resumed.
Presently, the price action is probing the 38.2 per cent Fibonacci at 1.36727, which converges with the 200-day MA (in orange). If it manages to penetrate below the two, the price action would then likely head towards the 61.8 per cent Fibonacci at 1.35724.
Conversely, a rebound from the 38.2 per cent Fibonacci would likely be followed by a throwback to the 23.6 per cent Fibonacci from below before the broader downtrend can be resumed.
