GBP/USD & GBP/JPY Charts: Pound Set Up to Rally Against Dollar, Yen
British Pound Highlights:
GBP/USD continues to act well after the historically strong rally last month, a good sign for those looking towards longer-term levels. The little dip we got this week might be all there is before October 21 high at 13012.
A breakout beyond last month’s high will have the trend-line from July 2014 in play, the slope that runs over the 2018 high as well. This long-term trend threshold is also in confluence at this time with the May high at 13176.
In the near-term, a bit more sideways price action may unfold before Cable trades higher, but as long as we don’t see a pervasive downswing unfold that takes 12768, higher prices are anticipated.
GBP/USD Daily Chart (congestion solid, higher levels look likely)
GBP/JPY came out of triangle to start the week but quickly reversed to put it into question. However, despite the chance of a fake-out turning into selling, price held the lower end of the triangle keeping in play the idea of seeing a continuation rally develop. As long as 13936 holds, so does the congestion pattern. Sustained trade above 14157 is seen as having GBP/JPY rolling towards the February 2018 trend-line and horizontal resistance at 14376.
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GBP/JPY Daily Chart (set up to run)
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.