Red lines- bullish channel
Blue line- bearish RSI divergence
GBPUSD remains in a bullish trend as price continues making higher highs and higher lows. Price made recently a new higher high at 1.2442 while now it is trading at 1.2363. Price is still inside the upward sloping channel but the RSI has started providing warning signals. Support by the lower channel boundary is at 1.2277. A break below this level combined with the bearish RSI divergence, will provide a new bearish reversal signal. Until then, bulls remain in control. The bearish RSI divergence is only a warning and not a reversal signal. If the bearish divergence is combined with a break out below the bullish channel, then we get the reversal. Bulls need to be very cautious.
