Chart of the day

GBPUSD is reaching the top of the consolidation channel and 1.2700. To extend higher, we must see a confirmed break above 1.2700 to invalidate the downside wave count extension long-term and short-term.

A rejection here will confirm the downside waves extension and will lead to a test of 1.2000. We need to see a clear confirmed break below 1.2500 for the short trade swing entry medium-term to be justified and to confirm that we will have a continuation downside.

Short trades could be opened here with a stop just above 1.2700. Long trades should be opened only upon a confirmed break above 1.2720. The instrument is making a key resistance test.