Thursday, April 12, 2018

The GBP/USD Rally May Reach 1.4400 – 1.4450

GBP/USD is testing the resistance at 1.4240 – 1.4245 and I think if it breaks out above it the pair could continue moving north to the resistance trend line of the channel (in red). If that happens, I think we could expect a rally to 1.4400 – 1.4420.

Even though the GBP/USD rally appears corrective at this stage there are two possible scenario for further development.

In the first scenario there will be a breakout above the trend line and a sharp rally of the British currency. In my opinion, that scenario should not be ignored since when it comes to the development of this pair there are quite a few political factor.

In the second scenario the pair could reach the resistance trend line and then to begin falling to the support trend line at 1.3850.