GBP in the zone

I'm away from home so my posts will be coming along a bit irregular. I expect things to turn to normal in a weeks time. 

GBP is still in the red shaded zone which is a very important support area. I would be very surprised if it breaks up from there. 

However, a closer look is a bit alarming for the bears. An rising channel has formed after breaking the red declining channel at the 4th touch which is very usual with sterling pound. After breaking the red channel, the freedom was short lived because it came back to the red channel and touched it 3 times before resuming its rise. This is a plus for the bear case. The breaking of such channels as the red one usually sets it free and it shouldn't have looked back but it did. So until there is a break of the red shaded area with conviction I would be cautious with longs. Hope it helps.