The GBPUSD is trying to take out a key resistance level today.
I’ve mentioned the 1.2980 level several times in recent weeks.
Notice how it served as resistance last month.
However, today I want to discuss something more significant.
There’s a structure that’s been developing on the GBPUSD monthly time frame since the early 2000s.
The multi-decade falling wedge above hints at a turn higher for the British pound.
And not just a little higher, either.
If GBPUSD buyers can break the trend line from the 2007 high, it would suggest a rally toward 1.5000 for starters.
Just keep in mind that the downtrend is still alive here.
Until bulls break that trend line near 1.3400, the pound is susceptible to further weakness.
And looking at the daily time frame below, the short-term direction hinges on that 1.2980 level.
1.2670 remains support for now.
But don’t sleep on the monthly pattern above. That’s the one to watch over the coming weeks and months.
A monthly close above that 1.3400 area could establish an intermediate if not long term bullish narrative.