GBP/USD testing monthly channel support - Lloyds Bank

Analysts from Lloyds Bank point out that below a long-term channel at 1.3270, the next support in GBP/USD is located around 1.2800.

Key Quotes:

“The market has stabilised after last week’s routing. Monthly channel support in the 1.3270 region is holding at the moment, with 1.2800 key Fibonacci support below there. We do believe this decline through 1.3500 is the final phase in the decline from the 2.1160 highs set back in 2007, but we have little in the way of confirmation of a base developing yet.”

“Key resistance in this regard lies at 1.40-1.4250. A move back up through this region would alleviate a lot of the current bear pressure.”