Pound Technical Outlook – GBP/USD, Week Ahead Could be a Defining One
GBP/USD Technical Outlook: Bullish
- GBP/USD working on breakout of long-term resistance
- Momentum could build should a breakout hold
- A rejection lower may not be outright bearish but warrant neutral stance
GBP/USD is working on breaking out above a major long-term threshold. The 13500-area has been a level in play since it acted as support in 2009 (exact level was 13501). In December 2019 and August of this year it became a substantial level of resistance.
In near confluence with this level is a trend-line running down from the 2007 top. That line has been breached and not of much concern anymore. But for cable to really get going it will need to get a little separation from 13500.
If it can continue to build on recent momentum in the week ahead, with some time we could see a run up into the low 14000s, the 2018 highs. If, however, we see a turn back down from resistance, then it may not be an outright bearish sign, but will warrant caution from the long-side.
All-in-all, this coming week could be an important one from a technical perspective, and of course from a fundamental perspective too with Brexit.
GBP/USD Daily Chart (working on breakout)
GBP/USD Weekly Chart (open space if it can get into gear)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.