GBPUSD approaching major resistance.

GBPUSD is now trading around 1.3791. Price has surpassed our initial target which was at 1.3770 and is now challenging the upper target boundary close to 1.38. Short-term trend remains bullish however traders need to be cautious as price has reached a very important resistance area.

Black lines - bearish channel

GBPUSD has reached the upper channel boundary and resistance around the 1.38 level. A pull back from current levels is justified. The RSI is overbought in the 4hour chart. A pull back towards 1.3740-1.37 is not out of the question. Bulls need to protect their profits. So far trend remains bullish as price continues making higher highs and higher lows. So far there is no sign of a reversal.