I’ve liked GBPUSD higher for the last few weeks.
The development of a massive twenty-year falling wedge hinted at an imminent break higher.
I wrote about that pattern on November 20th.
Here it is on the monthly time frame:
As I write this post, the pound is breaking above that resistance area near 1.3320.
In fact, it closed above 1.3320 last week.
However, I had some doubt as to whether the area would hold as new support.
Those of you who watched Saturday’s forecast video know what I’m referring to.
But so far, GBPUSD buyers are doing their part.
Not only is the pair holding above 1.3320, but it’s also testing the next key resistance at 1.3480.
This was the next resistance area based on the price action between December 2019 and September of this year.
GBPUSD needs to secure a daily close above 1.3480 to see higher levels such as 1.3650 and 1.3700.
And make no mistake about it, the pound has been above 1.3480 since the first half of 2018.
That means a breakout over the next few weeks could trigger a massive influx of buyers.
For that reason, I’m not ruling out a run to 1.4500 in 2021.