Forex: GBP/USD with possible purchases

Timeframe: H4

Technical Analysis: The chart shows that after the big downturn, the price has shaped an expanding trend channel and the price is currently on its support. If the price can confirm that channel support is active, it will go north.

Because the price is in a strong downward trend and the fundamental behind the pound is still unclear, it's good to consider that this possible up move is a correction.

The first place of which the price could turn is located at 1.2682. Also there is a level 23.6 at Fibonacci, as well as a collection of 50 and 100 EMA, SMA.

If the price breaks through the aforementioned resistances, then it will reach the next significant level of resistance at Fibonacci 38.2%. Also, the chart shows that there are two trend lines (green and light blue) that play a role of resistance. In support of this level come also the average EMA and SMA with a period of 200.

SL: 1.2490

Alternative scenario: If the price breaks the current Trend channel support, then it is possible to see a price drop to the next significant level recorded in the Flash Crash of 1.2430.

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