GBP/USD

Strong rebound from a major support helped GBP to firm after falling from 1.6150 to 1.54 levels in the past 3 months. Rebound was timely as the cross rate was testing major support levels. First resistance for GBP/USD is at 1.584 level (200 day moving average). From a long-term perspective GBP/USD might be forming a 3 year-long symmetrical triangle. So for a long-term buy/sell signal we need to wait for a breakout from the last three year’s consolidation range. However, meanwhile we can expect a short-intermediate term strength that can target 1.58-1.60 area.

Either as a reversal triangle that would break upwards around 1.65 or as a continuation symmetrical triangle that would break downwards around 1.52, GBP/USD should be watched closely for long-term opportunity.