Technical Analysis: GBP/USD Descending Channel Play

April 21, 2015

GBP/USD Daily 1:
Click on chart to see a larger view.

As you can see in the above chart, GBP/USD has been trading in a descending channel for around 12 months now.

GBP/USD Daily 2:
Click on chart to see a larger view.

Price is stepping down, breaking through support and then retesting it as resistance as it moves down the channel.

Just like what happened previously, price has broken through the most recent support zone (most recent green box on the chart), and now back up to retest previous support as resistance.

GBP/USD Daily 3:
Click on chart to see a larger view.

If you want to play for the pattern to repeat itself, the zone that price is at right now allows you to manage your risk to the upside if you short into it.

Price is in a down trend until it isn’t. Why fight the market when you don’t have to?

Do you have a Vantage FX MT4 demo account? Leave a comment below or mention @VantageFX on Twitter.

Dane Williams – @VantageFX

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