In July 15, extensive bearish momentum was gained. Since then, the GBP/USD pair has been downtrending within the depicted bearish channel.

Two successive bearish impulses were expressed around 1.7180 and 1.6630 corresponding to the upper limit of the depicted channel.

Price level of 1.6140 constitutes a prominent weekly support to meet the pair. Temporary breakdown is taking place today. However, bullish rejection is being witnessed in the recent daily candlesticks.

We expect the GBP/USD pair to retrace towards the price zone of 1.6330-1.6400 where another bearish impulse is expected to be expressed offering a valid low-risk sell entry. Stop loss should be set as daily closure above 1.6410.

This price zone corresponds to the upper limit of the depicted bearish channel as well as 61.8% Fibonacci level of the recent bearish impulse between 1.6630 and 1.6060.

On the other hand, risky traders can take a long position around the current prices as long as the bulls keep defending the recent low at 1.6050.