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The GBP/USD pair reached a new low of 1.3228 where it has found strong demand. At the time of writing, it was about to reach and retest the downtrend line that stood as a dynamic upside obstacle. As long as it stays under this line, GBP/USD could drop deeper and extend its downtrend.
As you can see on the H4 chart, the currency pair failed to reach and retest the down channel's downside line, the support level signaling that the sellers are exhausted.
GBP/USD could drop towards new lows if it stays under the downtrend line and if it drops below 1.3228 former low.
On the other hand, staying above 1.3228 and jumping and stabilizing above the downtrend line could announce an upside reversal.
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