On the weekly time frame you can also notice how closely that trend line coincides with the resistance zone marked by the Bollinger Bands indicator.
I think that there is little doubt at this point that the target of the rally is the zone around 1.3130 exactly, and until the pair reaches it there are about 100 pips left.
The situation will become interesting once GBP/USD does reach it – for now it is difficult to predict what will follow after that. The divergence on the weekly time frame is weak, between two lows only, but as far as it exists and it can be calculated, its limit is around 1.3267, which fits the rest of the technical analysis signals.
Once the pair does reach this zone we should be careful and look for other signals that will clarify the pair’s further development.
Let’s see how it keeps going.
ReplyDeleteIn fact it begins to show some strength.
ReplyDeleteIt's very bullish indeed.
ReplyDeleteSeems like it will keep pushing higher.
ReplyDeleteYes, indeed.
ReplyDeleteGood post!
ReplyDeleteGood insight.
ReplyDelete