GBP/USD - will it stay confined to ascending daily channel?
After a bearish start to last week, GBP/USD continued to push higher, to the resistance level at 1.3480. Like EUR/USD, price is now situated well above any descending daily and weekly trendlines that may have kept price in place over the past couple of months. A higher high has also been formed on the weekly timeframe, which offers further encouragement for bulls.
The resistance at 1.3480 is a significant one, with some significant touches in the past. This will be a clear area of interest for many traders this week, therefore we can expect some level of manipulation around the zone. Beware of fake breakouts to the upside. However, if price closes convincingly above the level on the daily timeframe next week, this will offer comfort that the bullish trend is likely to continue further. If price clears 1.3480, there is quite a large piece of ‘white space’ with very little in the way of resistance until 1.4250. If this happens, we could be in for a much larger bullish move. Currently the only hope for bears is that a confluence between the resistance at 1.3480 and the upper boundary of the ascending daily channels structure is enough to force price down, but this would be a shorter-term move.
The resistance at 1.3480 is a significant one, with some significant touches in the past. This will be a clear area of interest for many traders this week, therefore we can expect some level of manipulation around the zone. Beware of fake breakouts to the upside. However, if price closes convincingly above the level on the daily timeframe next week, this will offer comfort that the bullish trend is likely to continue further. If price clears 1.3480, there is quite a large piece of ‘white space’ with very little in the way of resistance until 1.4250. If this happens, we could be in for a much larger bullish move. Currently the only hope for bears is that a confluence between the resistance at 1.3480 and the upper boundary of the ascending daily channels structure is enough to force price down, but this would be a shorter-term move.