Technical Analysis: GBPUSD confirms bearish flag on UK “Freedom Day”
Looming concerns over the Delta covid variant probes the UK’s total unlock on July 19 as the infections jump to the highest since January. The same drag the GBPUSD prices to break the monthly rising channel, confirming the bearish flag chart pattern in turn. Given the MACD conditions also supporting the sellers and the RSI line having a bit gap from the oversold area, the quote is likely to extend the south-run towards the 1.3700 threshold and then to April’s low near 1.3670. However, any further downside will not hesitate to refresh the yearly low, currently around 1.3450.
Meanwhile, corrective pullback beyond the channel’s support line, now resistance around 1.3780 will aim for the 1.3800 round figure. Though, a downward sloping trend line from June 23, near 1.3875, will be a tough nut to crack for the GBPUSD bulls afterward. Even if the cable buyers manage to cross the 1.3875 hurdle, the stated channel’s resistance line and 200-SMA, respectively around 1.3925 and 1.3945 will challenge the pair’s further upside.