The GBPUSD pair continues to show strength, maintaining its position within a rising price channel on the 4-hour chart. This pattern suggests that the uptrend from 1.3001 remains firmly intact, providing a bullish outlook for traders.
As long as the pair respects the lower boundary of this channel, we can expect the upward momentum to persist. The immediate focus is on the 1.3434 resistance level. A breakthrough here could open the door to further gains, with potential targets at the psychologically significant 1.3500 area, and possibly extending towards 1.3600.
However, it’s crucial to keep an eye on the channel support. A breakdown below this level could signal a shift in the short-term trend. If this occurs, the next support to watch would be at 1.3312. A breach below this level might indicate that the upward move from 1.3001 has already peaked at 1.3434.
In such a scenario, traders should be prepared for a potential deeper correction. The next targets on the downside could be the 1.3260 area, followed by 1.3140.
As the GBPUSD pair navigates this critical juncture, market participants will be closely monitoring the price action around the channel boundaries and key resistance levels. These movements will provide valuable insights into whether the pound can maintain its upward trajectory against the dollar or if a correction is on the horizon.