The GBP/USD has been a very bearish pairing over the past year. With the price hitting fresh lows not seen since 2009. Therefore we have had to turn our eye to the long term charts to see if we can see which direction the GBP/USD looks to be moving next. The Daily chart below shows the price bouncing off a strong declining support line which started back in 2013.
The Price sharply bounced off of a strong declining support, therefore we entered into a long position. We have set our target at 1.451 which is a resistance line which was tested as a support 3 times before being broken in December. This is a likely target for the currency pairing.
If price does decide to continue south then we believe it will initially target the recent low at 1.383. If this does get broken then the price will look to make a fresh low, possibly at a low set back in early 2009 at 1.344. However, the RSI does not justify a large bearish movement for the time being.
