Key Observation: - The GBP/USD pair remains in a downtrend, as confirmed by the downward trendline and lower highs. - However, if the price closes and remains consistently above the trendline, it signals a potential trend reversal to the upside.
Price Action Analysis: - Bearish Indicators: Current bearish candlestick patterns and price action suggest continued downward momentum. - Reversal Signal: A close above the trendline with bullish candlestick patterns, such as a bullish engulfing or hammer, would indicate a potential shift to an uptrend.
Conclusion: While GBP/USD is currently in a downtrend, a close and sustained move above the trendline could signal the beginning of an upward trend. Traders should watch for bullish price action above the trendline for potential LONG positions.