With the down break of the larger upward Pitchfork channel, the GBP/USD pair changed behavior from bullish to bearish. The key support at 1.3055 is broken and this is a good confirmation of weakness. I also found a breakout of the upward mini Pitchfork channel, which is another confirmation of weakness. As long as the resistance is holding at 1.3160, a downward movement is expected. The short-term trend is bearish.
Trading recommendation: We are bearish on the GBP/USD from 1.3050 with the downward target at the price of 1.2905. The protective stop is placed at 1.3165.
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