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In our previous posts about GBPUSD, we warned traders that a pull back was imminent and price could soon provide a bearish signal. That signal would be a sign of weakness and would increase chances of moving lower towards channel support. GBPUSD remains in a bullish medium-term trend as price continues to trade inside the bullish channel. For how long?
Blue line- RSI support
Red rectangle - short-term support
Our expectations so far have been for price to make a pull back towards at least the lower channel boundary. Price has started making lower lows and lower highs. Price is now challenging the lower channel boundary which is important support for the shor-term trend. Breaking below and out of the channel would be a sign of weakness. Holding inside the channel could lead to price moving to new short-term highs above 1.3835.
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