GBPUSD: Downside possibility

GBPUSD, H4

On the H4, GBPUSD formed an ascending channel pattern, and the price fell toward the lower trend line, testing the AMA. A divergence has formed on the RSI, indicating the possibility of a decline.

• We consider selling GBPUSD on a breakdown of the trend line and AMA below 1.2965 with a target to 1.2870;