The GBP/USD pair is pulling back from its 1.2964 highs. The up trend is not over and I consider this pullback only a short-term one that should find support at 1.2840-1.2750 area and reverse higher for another final upward thrust towards 1.31.
Green rectangle - support area
Blue lines - bullish channel
The GBP/USD pair is facing short-term support at 1.2840 where the cloud support is found on the 4 hour chart. The price is expected to move a bit lower towards support area. Breaking below 1.27 will put the bullish trend in danger. Until then, I see this pullback as a corrective part of the bigger upward move towards 1.31.
Blue lines - bullish channel
The trend is bullish on the daily chart as price remains inside the blue upward sloping channel. There is no bearish divergence yet according to the RSI, so any pullback is considered as part of the upward trend. The bullish trend is expected to complete around 1.31.
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