- GBP/USD’s rally ran out of steam close to its two-month-old ascending channel resistance.
- Any dip could towards 1.31 be considered a buying opportunity.
- A meaningful move beyond the channel resistance could open the door to more gains.
GBP/USD’s rally ran out of steam at a two-month high eased back from the 1.3310-15 area. which marks the top boundary of an upward sloping channel from mid-September.
GBP/USD declined to daily lows, at 1.3230 Any additional fall could attract dip-buying around 1.3200 mark, limiting the downside around resistance at 1.3180-75.
However, any follow-through selling below 1.3150-40 could negate the bullish trend and prompt technical selling. GBP/USD could then accelerate the sell off to 1.3100.
1.3300 could cap the upside. A meaningful beyond here could see more buyers jump in and set the scene to a move towards September daily closing highs resistance at 1.3385.