GBP/USD Outlook (26 October 2022)

The GBPUSD trades higher on new-found optimism following the appointment of a new PM. As the price approaches the previous high of 1.15, look for a potential break of the resistance level to signal further upside potential. The next key resistance level is at 1.1740.

However, if the price fails to break above the resistance level and reverses lower, similar to the 5th of October, then the GBPUSD could retrace towards the trendline support of 1.13. Beyond the trendline support, the price could reach the key support level of 1.0960