Is the GBPUSD ready for the next leg higher?
If so, how high could the pair go?
Watch the video below to find out what I think.
Be sure to also scroll down for more commentary and an annotated chart.
The GBPUSD may finally be ready for the next leg higher.
I’ve discussed the consolidation between 1.2770 and 1.2980 for several weeks now.
However, today’s high isn’t what matters, at least not to me.
We’ve seen the GBPUSD rally above 1.2980 intraday before, including several times in October.
Every attempt has failed in that buyers were unable to break the resistance area on a daily closing basis.
The “daily closing basis” refers to the New York 5 pm EST close.
So until GBPUSD closes above 1.2980, the pair is vulnerable.
That said, the price action since November is starting to look constructive.
Repeated retests of a key area like this are often a sign of an imminent break higher. That’s especially true when you consider the October rally.
We saw the same thing happen recently with NZDUSD below that 0.6430/40 area.
A daily close above 1.2980 would expose 1.3170.
Alternatively, a close back below 1.2980 would keep the area intact as resistance a while longer.
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