Mihai_Iacob

GbpUsd- Can it go to 1.6 in 2021? (long term view)

Long
FX:GBPUSD   British Pound / U.S. Dollar
When it comes to Gbp, one thing was clear, it was very hard to trade on short term.
If we try to see the forest from the trees though, things will become more clear.
The pair was in a multi-year downtrend from 2007 and once we have the Brexit announcement, GbpUsd broke under 1.4 important support. With the normal ups and downs, the pair continued its drop and also had a short-lived spike under 1.2 new-found support.
Since this spike, GbpUsd has traded in an uptrend and, what is very important in my view, has broken above the long term wedge resistance.
This is a clear sign of trend change and I believe we are heading up and above 1.5, and even 1.6 as a target.
At this point, the cable is just under a very important resistance zone, and from here we can have a corrective drop.
This should offer a great opportunity for long term traders to build in trades with, as I said, 1.5 as a soft target.

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