GBPUSD within positive pattern – Analysis - 10-01-2018

The GBPUSD pair settled below the main bullish channel's support line, but we notice that the price leans on a support base that was formed above the previously breached resistance line that appears on the above chart, met by the EMA50 to add more strength to it, while stochastic provides positive signals now.

On the other hand, we notice that the recent trades are confined inside bullish pennant pattern that appears on the chart, therefore, these factors encourage us to continue suggesting the bullish trend in the upcoming period, and the price needs to breach 1.3580 level to get strong positive momentum that supports the chances of heading towards our extended target at 1.3800, noting that breaking 1.3505 will stop the suggested positive scenario and push the price to visit 1.3419 areas initially before any new attempt to rise.

Expected trading range for today is between 1.3480 support and 1.3620 resistance.

Expected trend for today: Bullish