Due to large volatility caused by various events in the recent trading sessions a broader look has been taken at the GBP/USD currency exchange rate.
What was discovered first on the larger timeframes was that the pair is trading in a rather large scale descending channel pattern. The pair has bounced off this channel down pattern’s upper trend line on 26th of February.
The event has resulted in the formation of a junior channel down pattern, which is guiding the pair lower at an even steeper angle.
In regards to the next trading session, the pair is set to meet the resistance of the junior pattern and test the support of the weekly S1 at the 1.3870 level.
