GBPUSD  Forecast

The GBPUSD slipped above 1.6070 yesterday, topped at 1.6117 but whipsawed to the downside, hit 1.5971 and closed at 1.6018 in a trendless market. My rounding bottom bullish formation is no longer valid but I think it’s too early to say that the bullish correction scenario since bounced from a double bottom formation around 1.5910 is over now. On hourly chart below we can see price is still moving inside a minor bullish channel. The major bearish scenario since fall from 1.6745 on April remains intact and a violation to the minor bullish channel might give an early signal of the end of the bullish correction but we need a clear break below 1.5910 to continue the bearish scenario testing 1.5800 and 1.5650 region. On the upside, 1.6200 resistance area remains the nearest target of the current bullish correction phase which probably will be hit if we see a strong/convincing movement above 1.6070 region.

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