GBPUSD remains in downtrend from 1.6524, the price action from 1.5951 is likely consolidation of the downtrend.

Near term resistance is located at the upper line of the price channel on 4-hour chart, as long as the channel resistance holds, the downtrend could be expected to resume, and next target would be at 1.5600 area.

Key resistance is at 1.6226, only break above this level will indicate that lengthier consolidation of the longer term downtrend from 1.7190 (Jul 15 high) is underway, then further rise to 1.6400 area could be seen.

Editor’s Note: Equity investors/traders can use the Currency Shares British Pound Sterling Trust (FXB, quote) ETF to take positions in the yen without a FOREX account.  The ETF looks to track the price of the British Pound Sterling (GBPUSD), minus ETF fee. The fund seeks to reflect the price of the British Pound Sterling (GBPUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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