GBP/USD surges above 1.2100 as US dollar collapses
The GBP/USD rose above 1.2000 at the beginning of the American session and recently reached a fresh one-week high at 1.2160. It is trading near the top, almost seven hundred pips above the weekly low.
The ongoing recovery in Cable faces the next resistance at 1.2200/20 while the 1.1970/80 area has become a key short-term support. Technical indicators in the four hours chart are approaching overbought levels but the momentum remains solid with no signs of correction.
GBP/USD analysis: Trades within rising wedge
Yesterday, the GBP/USD exchange rate revealed the upper wedge pattern. During Thursday morning, the rate was trading in the 1.1900 area.
From the theoretical point of view, it is likely that the currency pair could continue to trade within the given pattern. In this case the pair could reach the 1.2000 level.
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