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GBP/USD Cracking Channel Support but is Still Bullish

GBP/USD has been rallying in a choppy rising channel throughout 2017. The channel support is now being tested and appears to be cracking. However, the daily chart still shows a bullish market. 

GBP/USD Daily Chart

(click to enlarge)

Support Holding:
- The daily chart shows that the channel support actually held. 
- It might be premature to say that the channel support cracked.
- In fact, if price can climb back above 1.3345, GBP/USD would likely push towards the high around 1.3650.
- However, as long as price is under 1.33, there is still pressure on the channel support.
- If price holds under 1.32, then we have to anticipate a pending bearish breakout.
Bearish Signs?
- The 4H chart can give us some short-term signs.
- At the moment, price action looks bullish in the near-term.
- But let's see what happens around 1.32.
- If price starts to stay under 1.32, and the RSI starts to stay under 60, then we should have a bearish outlook and anticipate a pending break of the channel support, and then the current range support around 1.3030. 
- A the same time, if you are bullish on GBP/USD, this area around 1.31 is a great place for a pivot back towards the bullish trend.
- Then, clearing above 1.3345 would be a strong sign of bullish continuation. But holding under 1.32 would be a strong sign that GBP/USD will break below the 1.30-1.3030 support area. 


GBP/USD 4H Chart

(click to enlarge)