GBP/USD Price Analysis: Bulls eye the psychological 1.40 level

GBP/USD bulls have rallied into bullish territory near the 61.8% golden ratio.
Bulls now eye a test of trendline resistance as US dollar dives into support.

Ross J Burland FXStreet

As per the prior analysis, GBP/USD Price Analysis: Bears need to break a lot of support structure, the pound has rallied from support as the US dollar wilts following the European Central Bank meeting.

DXY daily chart

The bulls have been pushed back to support and the index remains below the countertrend line, enabling the pound to move higher.

Pre-ECB meeting, prior analysis

Post-ECB meeting

The price has penetrated the 61.8% ratio but has since fallen back into like and is consolidating there, perched in bullish territory.

The bulls will be keen on a test of the trendline resistance ahead of the bigger test that will be the psychological 1.40 figure.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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