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As expected by our analysis, GBPUSD pulled back towards the channel support and lower boundary. Bulls managed to defend the lower channel boundary and produced a new upward move that is close to providing new higher highs above 1.3830.
Red lines- bullish channelAs we mentioned in our previous analysis, holding inside the channel could lead to another push higher. So far bulls remain in control of the trend as price continues to respect the channel boundaries. Price has potential of making higher highs above 1.3830 and it is important to keep a close eye on the RSI and see if it provides a new bearish divergence. Support at 1.3755 is key and breaking below it would provide a bearish signal.
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