GBP/USD trending near channel line (1.5518-1..5218), neckline testing on the cards

The pair in recent weeks had broken the channel line range about 350 pips (as shown in the 1^st channel) and made equiv-distant move on south about 350 pips again and tested at around 1.5250 levels.

Although bulls tried to show strength near below second channel line but on closing basis pair suggested bears have surpassed the momentum created by daily bulls.

So as a result of second channel line's breach we anticipate now the exchange rate bids another downside risks of about 350 pips target in future days to come.

Thereby if you wish to plot the daily chart, technical analysts may be surprised with a "Head & Shoulder" candlestick pattern.

If our predictions come into accuracy then the pair is likely to test 1.5080 levels which would be contemplated as neckline (drawn horizontally around 1.5080 level) for the above head 7 shoulder pattern to complete and the decide the next trend on either side.

So for now we believe, on a short-medium term perspective around 1.5080 levels would be the critical point for this pair.

Fresh short build ups only below 1.5494 closing basis are suggested otherwise below channel line would be a support for the pair.