FX.co ★ Technical analysis of GBP/USD for September 29, 2016

GBP/USD is trending downwards within the descending channel. Today the upper channel trend line has been rejected after both 50 and 200 Moving Averages were broken while the pair moved lower.

At the channel top, GBP/USD formed a bearish divergence on the MACD, suggesting that the downtrend might not be over yet. The Fibonacci applied to the last wave up shows potential downside targets.

Consider selling GBP/USD while the price is near the 1.3000 psychological level that corresponds with the trend line breakout. The target should be one of the Fibs levels, either 161.8% (1.2932), 261.8% (1.2855) or 361.8% (1.2777). The suggested stop loss is 1.3050.

Support: 1.2980, 1.2932, 1.2855, 1.2777

Resistance: 1.3057