GBPUSD bulls are unable to trade below the support at 1.2557 and bulls reacted and GBP went higher..At current market conditions I prefer to be bullish. With FOMC today my advice is to define proper risk control before you make any trade.
Blue lines – Pitchfork upward channel
Blue rectangle - Support
Red rectangle – Median channel line and resistance
Orange rectangle – Swing high resistance
GBPUSD is trading above the blue rectangle support area and inside the upward sloping channel. I found the morning start candle pattern, which is positive sign for further upward movement. As long as price remains above the blue rectangle and inside the upward channel bulls will remain in control of the short-term trend. Upward targets are set at the price of 1.2684 and 1.2758, Additionally, I found that Stochastic is on oversold zone and it is fliping up.
