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GBP/USD - Near-term Bearish Correction within Bullish Mode

Cable has rounded a top this week as shown in the 1H chart. The GBP/USD is consolidating, and developing some bearish correction against last week's bullish run from 1.6454 to 1.6683.

(GBP/USD 4H Chart 4/3)

Bullish market:
Last week's run indicated that cable was still bullish in the medium term, as the daily chart would show more clearly. Price bounced off a rising channel support that came up from Nov. 2013's low of 1.5853, and broke above a falling channel that had developed in March.

Buying on a dip:
If the market has turned bullish, then the market could be looking to buy on the current dip. The 4H chart shows stochastic near 20, and the RSI at 40. This combination is sometimes followed by a continuation of a prevailing bullish trend.

Fibo retracement and rising trendline:
In the bullish continuation scenario, there is still some further near-term downside risk toward the 61.8% retracement level of 1.6542. The market should find support here especially if it is coincident with the rising trendline mentioned above.

(GBP/USD daily chart 4/3)

A break below 1.6540 and the rising channel support would challenge the bullish continuation scenario, and suggest a flat, or slightly bearish development.