GBP/USD 1H Chart: Channel Up

The pattern started when the pair bounced from 1.5394 and after testing pattern's resistance levels at 1.5594 and 1.5655 it has slowed down at 1.5650 where the pair is currently trading. The SWFX market sentiment on the pair is neutral with equal amount bears and bulls in the market. Technical indicators on aggregate point at a bullish formation in the nearest future (1H and 4H outlooks) indicating that we might see one more pullback and that the pair will continue to follow the pattern's trend. Long traders could focus on the level of 1.5655 where the recent pattern's resistance test level is. If this level is breached, the next targets could be set at the recent peak at 1.5679 and July high at 1.5723.

The stochastic indicator at 4H outlook points at a depreciation of the pair indicating that the pair might rebound from the pattern's resistance. Short traders could focus on 17th of July low at 1.5625. If the pair breaches this level, next targets could be set at the 4H retracement (Fibonacci) level at 1.5603 and the pattern's support band at 1.5587.