GBPUSD is in an upward trend, which is indicated by the lows and highs, which are arranged at higher and higher levels. However, since the last high was set at 1.4345, we are witnessing a correction of the last impulse.
As can be seen in the daily chart below, the pair tested yesterday support in the vicinity of 1.3930, which also covers the level of 50% of the abolition of the last impulse. During the day, the quotes fell under this area, but returned back over the zone on session closing.
As a result of the price action described above, candle with a long lower shadow was created, which indicated a positive support test. Today, the rate has fallen back into support and if it would be possible to break the yesterday’s day closing , it may turn out that it will be surrendered.
The implementation of the above scenario may mean a deepening of the correction, and the nearest key support will then be located within 1.3600. Alternatively, the return of the demand will open the way to continue the upward trend and retest this year’s highs at 1.4345.