The GBPUSD continued it’s bearish momentum yesterday, bottomed at 1.6329 and closed at 1.6341. On daily chart below we can see that the pair is making a minor bearish channel (red) after some bullish momentum which form a bullish channel (blue) since July 08. The bias remains bearish and still targeting 1.4270 area but I prefer to stand aside for now since the lower line of the bullish channel could provide a good support, giving me a bad risk- reward ratio. A break below 1.4270 and violation to the bullish channel should trigger further bearish momentum and outlook. If the bullish channel hold, we might see an upside rebound testing 1.6440/70 area.
Today we will have US Core Durable Goods Order and New Home Sales data. The market is expecting a positive results to support it’s optimistic view so a disappointing numbers could be bad for the Sterling as risk aversion may increase.