GBPUSD topped two weeks ago just above 1.35 when we mentioned that a 5 wave move higher was about to complete. Price has since then pulled back below 1.30.
GBPUSD despite the sharp pull back from 1.35 remains inside the bullish medium-term channel. Channel support is at 1.2750-1.2770 area. This week I expect price to start lower and then bounce towards 1.31 before moving again lower towards the lower channel support. Although I believe the entire upward move from 1.1958 has been completed, the corrective phase we are currently in has still lots of room to unfold and is not over yet.
The material has been provided by InstaForex Company - www.instaforex.com