FX.co ★ GBPUSD approaches our target.

GBPUSD as we mentioned in previous posts, had broken above the resistance area between 1.36-1.3650 and was heading towards 1.3770-1.38. Price today is at 1.3750 just a few pips from our target.

Blue lines- expected equal size upward move

Red lines - trading range (broken)

GBPUSD having broken out of the trading range, is moving higher in a bullish short-term trend. It is very clear that price is making higher highs and higher lows and the breakout has provided us with a bullish signal. Our expectation was and remains that this upward move will be equal to the first upward move that we saw in the end of September. Price is expected to reach 1.3770-1.38 although I would not rule out price to reach the upper channel boundary around 1.3850. Support remains key at the recent consolidation range at 1.3650-1.36. As long as price is above this area, bulls are in control of the trend.