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The GBPUSD struggled to overcome former channel support once again during yesterday’s session.
This is an upward sloping pattern that we discussed over the weekend and one that also capped last Wednesday’s advance.
In fact, yesterday’s high was 1.2940 which is the same level I pointed out just before Monday’s open. Whether or not this area continues to reject advances is yet to be seen, however.
Unlike channels that form against the trend, upward and downward sloping flags often represent exhaustion.
Notice how the channel in the chart below developed in the same direction as the rally, which hints at exhaustion from buyers.
CONTINUE READING on
Daily Price Action
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