The GBP/USD has been in a lateralized trend for years, testing several times the resistance in the 1.33-1.34 price zone as can be seen in the following weekly chart:

Last December, it managed to break through this resistance and hold above it, following a rally up to prices of 1.41-1.42. Thus taking the bulls in control of the pair.

At the moment the pair is in a visible uptrend channel on 4H timeframe. We can see that the GBP/USD remains above the psychological support 1.38 (red horizontal line), as well as above the uptrend line of the channel (green line).

Bulls are currently above the support at 1.3880 (yellow horizontal line). They should hold there to achieve a bullish continuation during the day. If this support is broken, the next floor would be 1.3850 (turquoise line).

The outlook will remain bullish if the bulls keep the pair above the ascending channel and the psychological support 1.38 (red horizontal line).

In my personal opinion we should hold bullish positions with stop below 1.38.

Greetings friends!

The information provided in this publication should not be considered as an investment recommendation. Trading cryptocurrencies, forex, stocks, among others, is risky.