GBP/USD: The bulls are looking more positive now [Video]
|GBP/USD
A bull run on sterling in yesterday’s session (on the prospect of a more constructive outlook for the Brexit trade deal talks) pulled Cable through an important near term resistance at $1.2540. Although the break could not quite be held into the close, the bulls are looking more positive now. A closing move above $1.2540 would complete a small base pattern within the range (arguably a head and shoulders bottom) which would imply a test of the $1.2810 key June high once more. The is a more positive bias now forming through momentum indicators, with RSI at a three week high and leading the mini breakout, whilst Stochastics are rising strongly and MACD lines have just crossed higher. We have now drawn in the key 7 month downtrend from December which is a barrier up at $1.2705 today and may now become an issue for the bulls in the coming days. Support is building in a range of around 100 pips between $1.2435 (what is effectively the right hand shoulder of the base pattern) and the $1.2540 neckline of the breakout. The bulls will look to use this as a base for moves higher now. Next resistance is $1.2685.
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