GBP/USD Price Analysis: The channel top rejection could lead to a push lower

• GBP/USD is trading over half a percent higher on Wednesday but the bulls have hit resistance.
• The market has moved back below 1.30 as two key levels met.

GBP/USD 30-minute chart

GBP/USD has been moving higher on Wednesday after the long downtrend inspired by the last set of Brexit negotiations. There has been a series of higher highs and higher lows on the intraday (30 minute) timeframe but the bulls hit a brick wall at 1.30.

The technical pattern on the chart is a channel formation. The top of the channel met the psychological level and the price fell 71 pips. The next support on the downside is the channel low but beyond that, there is an important level at the key-value area. This is the point in the consolidation where the price has been hit the most times. Also around 1.2920 there has been two rejection points previously and this could be a support area.

The indicators have recently turned bearish. The MACD histogram is green and the Relative Strength Index has now dipped below the 50-level. The signal lines are above the mid-point which suggests the uptrend might not be over yet but they are lagging in nature. The bulls need to wait and see if the wave high is tested and taken out again but the bears look to be in a slightly stronger position after the topside rejection.

Additional levels