GBPUSD - Testing Key Resistance Zone at 1.38-40
Cable has broken above 2017 highs and the 2014 bearish trendline and is testing the confluence of the pre-Brexit support turned resistance at 1.3831 and the 38.2% Fib, retracement of the 2014-17 downtrend
RSI is showing a bearish divergence vs price which adds further warning that we may see a pause in upward momentum and we are also right up against the regression trendline of the 2017 ascending channel
If we can clear 1.4000 with conviction then we could see a move to 1.44/45 which is the next significant Fib. level and the 200SMA. Failure to clear and expect a pullback to the centre line of the regression channel around 1.36.
Remain short term bullish as long as we stay within the regression channel and above the 50 SMA
RSI is showing a bearish divergence vs price which adds further warning that we may see a pause in upward momentum and we are also right up against the regression trendline of the 2017 ascending channel
If we can clear 1.4000 with conviction then we could see a move to 1.44/45 which is the next significant Fib. level and the 200SMA. Failure to clear and expect a pullback to the centre line of the regression channel around 1.36.
Remain short term bullish as long as we stay within the regression channel and above the 50 SMA