Yesterday, the British pound closed the day with a 23-pip gain — not much, but it came with a promising breakout through the nearest inner line of the price channel. During today's Pacific session, the price is again pushing through this resistance. Clearly, it intends to test the upper boundary of the price channel in the 1.3700 area.
The 1.3635 level now acts as an intermediate resistance. Despite being secondary, it was a strong resistance level in early 2022, holding back January and February bears for an entire month. Even the Marlin oscillator has slowed its growth. However, at the moment, the pause around this level appears to be temporary, as the wedge formed by the price channel line and this level (gray area) should prevent it from developing further.
On the four-hour chart, the price maintains a steady uptrend but is now at the upper boundary of the short-term price channel. This creates a risk of a corrective pullback. To avoid this, the price must break above both the channel and the 1.3635 level during today's session.
If it fails to do so, a decline of 90–120 pips (toward the lower boundary of the local channel) is quite possible.
