GBP/USD Goes Down

Up until recently, the GBP/USD pair was trading at its multi-month high around 1.30-1.3050. Since last week, however, the pair has decreased in price causing it to return to the upper line of the long term trading channel.

Currently, GBP/USD is trading at 1.2798 as bears are pushing it down to a low of 1.2774. The pair showed multiple rejections at the 1.31 level and the bear camp decided to take advantage of the low volumes. 

Main trend on the short term has shifted from bullish to bearish with first bear target at 1.2535. Main bear target is seen at the lower trend line of the trading channel resting at 1.2100. 

If bears take control over the pair, we might see the price rise to major bull target at 1.32. In order for this to happen, the news release on Friday should hint that the US dollar will continue to depreciate. 

Chart: GBP/USD H4