- GBP/USD bulls are taking the control back with eyes on a key daily resistance line.
- The bulls need to get above 1.1150 for prospects of a break into the 1.1200s and higher.
The pound is in recovery mode, breaking through last week's lows of 1.1055 and is now penetrating into the 1.1100 (New York equities open high) area in Asia. The following illustrates the prospects of a restest of Wednesday's highs and a move to 1.1150 and beyond with 1.1180 as the prior day's highs. 1.1495 was last week's high.
GBP/USD M15 chart
The price is riding up the trendline support with this week's high near 1.1180 as a meanwhile target on a break of 1.1150. The support structure, however, on a break of 1.1080 guards a move to 1.1050 and then a test of 1.1000 ahead of space to Wednesday's low down near 1.0925.
GBP/USD daily
The daily chart, on the other hand, has the price firmly supported at a key retracement area in a 50% mean reversion of the prior bullish impulse. The trendline resistance could come under pressure in due course and this puts the focus on a significant upside recovery on the table with 1.1650 eyed above 1.1500 (last week's high)
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