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GBPUSD : Bearish Trend Continues, Testing Key Support at 1.6061

GBPUSD : Daily Chart

GBPUSD extended losses today by declining below the support at 1.6162 and now testing the key support at 1.6061. The losses came after the release of missed services PMI data and also investors are locking gains ahead of the Non-farm payroll data. 

"Markit research group said that the U.K. purchasing manager's index slipped to 58.7 in September from a reading of 60.5 the previous month and below the economist's expected decline to 59.1."

Overall on the daily chart, there seems a descending triangle trend according to which the pair should decline below the key support at 1.6061.

GBPUSD : 4 Hour Chart

Whereas on the 4 hour chart, there seems a falling channel trend and the pair is currently testing support from the falling support trend line of the channel. If it is able to hold gains above this level we might again see a short term rebound in the pair surging towards the resistance trend line otherwise it will break down below this level.

GBPUSD : Weekly Chart

On the weekly chart we can clearly see that if the pair declines below the above mentioned key support level, the next nearest support would be at 1.5886. Declining below the 200 day SMA might signal the downtrend continuation.