I Expect A GBP/USD Rally To 1.3500 Followed By Another to 1.4000

The depreciation from 1.43760 to 1.29572 reached and went over the limit of the trend channel, and in the meantime the pair reached a strong support level on the monthly time frame.

At the same time the RSI indicator on the D1 time frame formed a divergence between three lows and the GBP started rallying.

I think this rally will continue during next week and the first resistance to the upside is the zone around 1.3500 – 1.3550.

If the pair breaks out above that resistance we may see a rally to 1.33950 – 1.4000. Such a rally would also test the support trend line the pair broke out below and it would also reach the limit of the RSI divergence on the D1 time frame.