Blue horizontal lines- Fibonacci extension targets
Green lines- Fibonacci retracement levels
Blue upward sloping line- support trend line
Red lines- bullish channel
GBPUSD is inside a short-term bullish channel making higher highs and higher lows. In our previous analysis we noted that our next focus would be the 1.23 target. At 1.23 we find the 50% Fibonacci retracement of the entire decline. As long as price is inside the bullish channel and above 1.2015, bulls will remain in control of the trend. The RSI has not provided a bearish divergence yet. Nevertheless bulls should be cautious at the end of the week. GBPUSD is near important Fibonacci resistance level and at the end of the trading week we could see profit taking after such a strong bull run.