GBP/USD Continues Rising Despite The Political Situation

The GBP/USD pair continued moving to the upside, and in my opinion that means that for the moment we have to pay attention mainly to the technical analysis picture, as the fundamental one does not seem to play any considerable role.

I will begin from the monthly time frame: the pair has been moving within a wide range of 700 pips for five months now and we can see that on this large time frame has formed an obvious barbed wire pattern.

The range can be seen very well on the weekly time frame and the target of the current move to the upside is around 1.2650 – 1.2700.

In case, however, the pair breaks out of this zone, we could see a rally toward the red diagonal trend line, connecting the highs of the move to the downside from 13th July 2015 (1.71910) until today.

Despite that I think that is a corrective move to the upside and the downward trend from the last two and a half years is not over yet.