The GBPUSD continued its bearish momentum yesterday and now struggling around the lower line of my bullish channel as you can see on my h4 chart below suggests a critical technical phase. As long as the bullish channel holds the bullish scenario remains intact and the lower line of the bullish channel can be a good place for a long position due to a good risk reward ratio, with a tight stop loss on a clear break below the bullish channel and 1.6270/50 support area. Immediate resistance is seen around 1.6350. A clear break above that area could trigger further bullish momentum testing 1.6420 which could keep the bullish scenario intact. On the other hand, a clear break below the bullish channel could end the bullish outlook and lead price to a new bearish view testing 1.6100 – 1.6000 area.
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