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I wrote about the potential for a bullish GBPUSD breakout on November 20th.
The falling wedge that has developed over the last twenty years hints at a possible turn higher in 2021.
However, as I mentioned last week and again over the weekend, GBPUSD needs to secure a close above the 1.3340 area.
As of now, that’s a key resistance level.
And a daily close above that area may not be enough.
Given that the upper level goes back to the 2007 high, it may take a weekly or even monthly close above 1.3340.
Furthermore, GBPUSD bulls need to clear the 1.3480 horizontal level to see the pair rally in 2021.
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So, what are the odds that the pound breaks higher?
If the pair continues to hover just below key resistance near 1.3340, the odds are fairly good that GBPUSD breaks higher.
Of course, that could change if we start to see lower highs and lows develop.
But as long as GBPUSD is above the May trend line just above 1.3000, I like the idea of a move higher.