We’ve seen GBPUSD move back to the bottom of the downward trending channel, currently at 1.3390.

The October support level of 1.3426 held last Friday after the Bank of England meeting, but strong inflation data out of the US has pushed the pair below this level this morning to hit fresh lows for the year. Although the weekly/monthly trend is bearish, on the daily candles the pair is now at the bottom of the trend channel.

Therefore, we like to be long for a tactical rebound, targeting 1.3650 as a 2% take profit level.

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