GBP/USD: Uptrend In Progress
Admirals | Mar 14, 2016 11:55AM ET
GBP/USD's ascending scallop on H4 time frame suggests further bullish continuation. If we drill down to H1 time frame we will see a solid uptrend where GBP/USD has been bought on pullbacks. The first POC (L3, 38.2, triple top breakout) comes within 1.4315-25 zone and the pair could reject towards 1.4440.
A 4h close above 1.4420 (H3 cam PP) would signal a continuation towards 1.4550. POC2 (EMA89, L4, 50.0, trend line) comes within 1.4260-80 zone and the deeper pullback below 1.4310 could target POC2.
If POC2 zone is reached, GBP/USD will still be bullish, targeting 1.4420-40 and above. Only the real close below a fakeout candle at 1.4115 would initiate sellers for another break below 1.4000.
However, 1.4550 is the interim resistance, and should the pair reach it we could see new momentum sellers and the price could reject from it.
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