GBPUSD bulls are starting to have their way with the market.
The pair is surging above the 1.3480 key level after closing Wednesday’s session above it.
I’ve discussed the GBPUSD bullish scenario for weeks.
It started on November 20th when I first mentioned the multi-year falling wedge pattern.
Here’s that pattern again in case you missed it:
Just a few days ago, I said that the charts say bears are wrong.
It was a bold call, but one that’s playing out nicely so far.
Even the price action over the last couple of years looks bullish.
I pointed this out in the December 5th weekly forecast, but it’s worth illustrating again.
Notice the 2,000 pip inverse head and shoulders pattern above.
There are multiple left and right shoulders to the structure, but that’s okay as not every head and shoulders pattern is picture-perfect.
If the weekly pattern above plays out according to plan, we could be looking at a measured objective of 1.5500 in 2021.
If you saw my December 3rd GBPUSD commentary, you already know about my 1.4500 target for the pound.
Whether GBPUSD reaches 1.4500 or 1.5500 (or both) next year is anyone’s guess, but a weekly close above 1.3480 would be an excellent start for bulls.
Key resistance comes in the 1.3680 region.
Break that, and there isn’t much to stop GBPUSD from reaching 1.4500.