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Fan Yang

GBP/USD Has 1.35 in Sight

GBP/USD is likely on a bullish path towards 1.35. It has shifted from a bearish trend to a sideways one, and has recently been building up bullish price action.

GBP/USD Daily Chart

(click to enlarge)

Bullish Buildup:
- On the daily chart, we can see that since October 2016, GBP/USD shifted away from the bearish trend.
- After many months of sideways action, GBP/SUD broke above the consolidation range resistance in May.
- After consolidating again mostly under 1.30, price was able to hold above 1.26 and push higher.
- The fact that price pivoted off 1.26 was significant.
- It showed that the market respected the previous consolidation range as support.
- Furthermore, price bounced off the 200- and 100-day simple moving averages (SMAs) after crossing up from under them. This is call the bullish sling-shot signal. 
- With all this bullish buildup, it should not be surprising if price pushes towards the next key resistance around 1.35
- If price pulls back, I suspect that this time, the 1.28 area, even the 1.30 area will start becoming support. In fact, if these levels do become support, it would be more evidence of a bullish market .

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