The question is how far will any retrace go? As long as we remain in the channel then I expect GBP to head south and look for support from the lower channel which will coincide with the 200 . If the channel holds then we can expect GBP to head much higher towards 1.50.
A break of the 200 and the lower channel would suggest the broader downtrend is resuming and we can expect a return to a sub 1.40 rate.
I expect GBP to head lower from these levels but find support for a push higher throughout next week.
Heavy news week, next week from Tuesday.
At this point we could go either way.
A close on H1 below 1.4233 and a failure to regain the channel would suggest we're headed lower though 1.4184 is WS1 pivot which may act as support.
Above 1.4255 and I shall look for a LONG entry. A retest of 1.4236 (200sma) and failure to break and I'll go SHORT.
I'm not super confident about this trade but I'm in at 1.4162 with a tight STOP at 1.4136.
Price is now 1.4178.
Plenty of hurdles ahead for GBP BULLS so I need to get this trade to b/e and see what happens.