FXWirePro: 300+ pips slump likely if GBP/USD breaches trend line support

Yes indeed, as stated earlier as well if you wish to plot the daily chart, technical analysts may be surprised with a "Head & Shoulder" candlestick pattern.

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.

And for now below channel line is most likely today.

Although bulls in the beginning of the day tried to show little strength near below second channel line but on closing basis pair suggested bears have gained 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.

RSI (14) signals downward convergence with falling prices at 55.6652 levels.

Sharp sell call by slow stochastic as %D line cross over exactly above 80 levles, %D line at 85.5628 & %K line at 75.1756, signifying overbought pressure.

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 & 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.