• GBPUSD broke daily down channel
• Further gains likely toward 1.2300
GBPUSD recently reversed up sharply from the support zone located between the pivotal support 1.2000 (which previously reversed the sharp downward impulse wave in August) and the lower weekly Bollinger Band. The upward reversal from this support zone created the weekly Japanese candlesticks reversal pattern Morning Star – the middle candle of which is also the well-formed Hammer (strong bullish signal for this currency pair).
The pair recently broke the daily down channel from May – which should add to the bullish pressure on Cable. With the moderately bullish sentiment affecting the Sterling, GBPUSD is likely to rise further toward the next
strong resistance level 1.2300 (top of the previous short-term correction 2).