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GBPUSD: Broke down the upward channel

Since the start of the year the currency fell more than 1.5% and fell more than 2.5% this past week.

Last week the GBPUSD fell with a wide range, breaking below the upward channel and closed near the low of the week suggesting a strong bearish momentum.

The Stochastic is displaying a strong bearish momentum and is below the 50 mid line suggesting a weakness in the pair.

Last week the GBPUSD changed from a recovery phase to a bearish phase and is trading below all three moving averages the 10, 50 and 200 week moving averages signaling a clear move the 2015 low.

Expecting a downward move to year low at 1.4566 on a break below previous week low at 1.5026 (scenario 1) or a bounce from a weekly support at 1.4964 could push the currency up to a key level at 1.5164 (scenario 2).