RLinda ! GBPUSD-> The risk of breaking the trend. What next?

GBPUSD is moving into a consolidation phase within the upward channel. Prices in the market are beginning to turn around after strong activity since early November, but the pound is still within acceptable limits.

(Chart 1. Daily timeframe. Technical analysis)

The global chart points us to the formation of a divergence as the first bell for a reversal. The price is trying to get stronger after the break-up of the resistance, but the price goes back to the range, if the price makes a false-break-down, the potential for downside to 1.13500 will open.

On the hourly chart the price is testing the support zone of the channel and is in the risk zone. To go long, it is necessary to wait for the price to go above 1.18780 and consolidate in the long zone. For shorts, we wait for a breakdown of the channel support.

Regards R.Linda!