Thursday, January 18, 2018

GBP/USD Is Close To a Key Resistance Level

GBP/USD is clearly aiming for the key resistance around 1.3950 – 1.4000 and toward the resistance trend line and it has almost reached that zone.

Said zone is marked on one side by the resistance trend line of the trend channel (in blue) and from the Bollinger Bands indicator on the monthly time frame on the other.

 I think that if it manages to overcome that zone that will be both a break out above the trend channel and a signal that the pair is renewing its move north, after a year and a half of depreciation.

In the alternate scenario there will be a drop from the resistance zone to the support trend line (in red) and after a possible breakout there will be another drop to 1.3050-1.3000.