Chart Of The Day: GBP/USD

 | Jan 20, 2021 06:30PM ET

Even though this is a bullish wedge developing for GBP/USD on the daily chart, it doesn't mean it will breakout higher. It is just that the odds favor an upside break more than a downside one. Consistent highs and higher lows are developing the pattern currently, which means a break of the 1.3700 level (sustained) or a break of the ascending trendline at 1.3580, would allow for the breakout near term. Above the 1.3700 level is a long-term 78% Fibonacci retracement at 1.3760, and the 38% retracement of the December move higher comes in at 1.3519, which should be noted.