Cable ran into resistance today at Friday’s high and then immediately turned lower, putting in a double-top on the short-term charts.
Technically, this is bearish but most of the downside has already occurred. GBP/USD is in a medium-term uptrend within a channel. We see the channel as the dominant feature on the chart with the double-top as a secondary feature.
In the short-term we expect to see a continued slide in the pair but expect uptrend support to hold. We think that will provide an excellent buying opportunity for an eventual move to 1.55.