The EUR is weak, the USD is seeing a much needed pullback, and despite uncertainty in the past couple of months leading up to the elections, the GBP is starting to look like a nice long trade.
I think we might see a decent opportunity in the GBPUSD in the next couple of days.
The level I am looking for is 1,55.
Around 1,55 heaps of confluence is layered.
1. momentum since the bottom at 1,46
2. 1,55 was previous resistance, tested at the 29th - 30th of April , and could very well be tested as new support
3. Both 50% and 61,8% fibo levels, will come to play around 1,55
4. The 200 will com into play
5. The ascending will provide further support.
A possible target could be 1,625 - 1,66, before the USD bulls will start to run again.
Keep an eye on the DXY though.
The GBPUSD pullback, coincides with a pullback on the DXY to 95. If the DXY breaks through 95, the GBPUSD will probably depreciate further than 1,55.
So look for a rejection of the 95 level on the DXY for extra confluence.
// Mads Brandt