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.
Looks like it will keep pushing higher.
ReplyDeleteInteresting analysis, thanks.
ReplyDeleteIt found some resistance at 1.4300.
ReplyDeleteGreat post.
ReplyDeleteImportant levels to keep in mind!
ReplyDeleteGood insight.
ReplyDeleteVery good analysis.
ReplyDelete