In our last analysis on GBPUSD we warned that price was approaching an important resistance area and a pull back was expected and justified. In our analysis we noted that a pull back towards 1.3740-1.37 was expected to come soon. Price today made a low at 1.3741.

Red lines- bullish channel

GBPUSD is pulling back. However price remains inside the short-term upward sloping red channel. Support at the red channel is at 1.3675. As long as price holds above this level, short-term will remain under the control of bulls. Resistance remains key around 1.38. Price is making higher highs and higher lows after the major low at 1.3410 at the end of September. This up trend is valid as long as the red channel is not broken downwards.