- GBP/USD stays on the bids for the fifth consecutive day inside a three-week-old rising channel.
- Immediate channel’s resistance line can test the short-term bulls.
- Sellers are less likely to enter above the previous resistance line from September 2020.
GBP/USD rises to a fresh high since April 2018 while taking the bids near 1.4122 during Wednesday’s Asian session. In doing so, the cable stays strong inside the ascending trend channel amid bullish MACD signals.
Given the pair’s nearness to the resistance line of the stated channel from February 02, GBP/USD buyers are likely to struggle going forward.
However, a clear break of 1.4140 immediate hurdle will quickly propel the quote beyond the 1.4200 high to challenge March 2018 peak surrounding 1.4245.
On the flip side, pullback moves may aim for the 1.4000 psychological magnet ahead of testing the channel’s support line, at 1.3945 now.
Even if the channel’s downside break will strengthen the bearish bias, GBP/USD sellers should remain cautious unless the quote drops back below an ascending trend line from September 2020, currently around 1.3810.
Overall, GBP/USD bulls have little room on the upside before tackling the major hurdles. As a result, pullback can’t be ruled out.
GBP/USD DAILY CHART