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GBPUSD has reached as high as 1.4230 and is now pulling back towards 1.3950. Trend remains bullish as price continues making higher highs and higher lows. Despite the recent pull back of more than 200 pips, price is still above the major long-term support trend line.
Green lines - bullish channel
GBPUSD continues inside the channel and despite the recent pull back we could see this as another buying opportunity close the channel support. Channel support is found at 1.3750 and as long as price is above this level, we consider that trend remains bullish. The RSI did not make a higher high, creating a bearish divergence. However this is just a warning and not a reversal signal. For a trend reversal signal, we should wait for an exit out of the bullish channel before confirming the change in trend. Until then all pull backs are considered buying opportunities.
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