The GBP/USD currency pair has recently broken below the lower boundary of its rising price channel on the 4-hour chart. This development indicates that a longer consolidation phase is likely needed before the uptrend that began at 1.3001 can continue.
In the coming days, we can expect range trading between the levels of 1.3312 and 1.3434. As long as the key support at 1.3312 holds, there’s potential for the uptrend to resume. A breakout above the resistance level of 1.3434 could pave the way for further gains, possibly reaching towards the 1.3500 mark, and even extending to the 1.3600 area.
However, if the price breaks below the 1.3312 support level, it would suggest that the upward movement may have peaked at 1.3434. In such a scenario, the next target to watch would be around 1.3260, followed by a further decline towards the 1.3140 area.