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GBP/USD Back near Rising Channel Support

The GBP/USD has put in a top this week and slid from it, as the 4H chart shows. However, this decline could be a temporary correction, in the context of a bullish market. 


(GBP/USD 4H chart)

If the market holds GBP/USD above 1.6535, it would respect the price bottom it put in after the 1.6455 low. It would also show respect to a rising channel support seen more clearly in the Daily chart. 


(GBP/USD daily chart)

Bullish scenario:
The 4H stochastic shows a market that could be completing a bearish cycle. AS price nears 1.6535, we should anticipate support in a bullish context, to challenge the 2014 highs in the 1.6783- 1.6820 area.

Bearish scenario:
A break below 1.6530 opens up 1.6455. Below that the 1.6250 level would be the next key level.