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The GBP/USD pair could drop in the short term after reaching the ascending channel's upside line which serves as resistance. In the short term, it could slip lower before resuming its upwards movement. It could still grow as long as it stays within the channel's body.
1.3756 level, a former lower low, which was seen as an upside obstacle in the previous days, is now seen as a downside obstacle, or as a support level. We cannot exclude a temporary decline towards this level.
A minor decline could help the bulls buy from the lows. The upside scenario remains intact as long as the pair is traded within the channel's body above the uptrend line. Only dropping and stabilizing below the uptrend line could invalidate an upside continuation.
A minor decline was somehow expected after reaching the 1.3800 psychological level and the channel's upside line. Dropping a little, the GBP/USD pair may bring new buying opportunities from around the 1.3756 level. The pair could climb towards the 1.3902 higher high as long as it stays above the uptrend line.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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