Greg Michalowski, of ForexLive.com, charts this currency pair that had some ups and downs on Wednesday—though it’s continuing to trade higher—and Greg takes a technical look at how the topside trend line is currently being broken, which marks a key zone to watch for support.
Making new highs…
Seven straight days higher. The close Tuesday was at 1.5337. Wednesday has had some ups and downs, but the GBP/USD pair is continuing to trade higher. New highs are being made at the moment, and in the process, the price is breaking above topside trend line support at the 1.5414 level. If the price is to go lower from here, this line will need to play a roll. Move below and the pressure is off. Stay above and the trend continues.
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The next upside target comes in at 1.5479-85 where the low from December and the high from February 18 come in. The pair moved above these levels on February 25 and February 26th but quickly reversed. There is not much else to hang a hat on from a technical perspective.
So watch support below. A break may lead to a more corrective move, but understand the bulls remain in control.
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By Greg Michalowski of ForexLive.com
