Three Reasons Why GBP is Set For a Pullback

The GBP has just reached a significant resistance level and the bull run is likely to pause now, if not pull back.

Here is the evidence.

In this first chart the bullish breakout is clear from the breaching of the blue trend line.

The Andrews Pitchfork clearly defined the path of price and nicely captured the low prior to this last move up.

Cable has also hit the upper warning line that is circled.

Zooming out to the bigger picture, in the next chart you will see that we have also hit a significant action reaction line which is likely to impede the bull market in the short term.

Placing both these sets of lines together makes the picture even clearer.

Not only do we have these geometry factors in play, the last chart here shows that we are also at the 61.8% Fibonacci retracement level.  

Putting all these factors together suggests that the odds for a continuation in the up move is not favoured  - at least for the time being.

But with Brexit around the corner – anything could happen!