GBPUSD Forecast:

The GBPUSD continued its bullish momentum yesterday, made an important technical movement by slipped above my major trendline resistance (red) indicating a serious threat to the bearish scenario. The Sterling seems benefited from broad Dollar weakness and the pressure is more to the upside. On h4 chart below we can see that price still struggling around the trendline resistance. It’s too early for a bullish reversal scenario since price still can make a false breakout if fails to consistently move above the trendline. Another technical tool that suggest potential bearish view is the rising wedge formation (blue). If price fails to consistently move above the trendline and break below the rising wedge, the false breakout is confirmed which should trigger significant downside pullback towards 1.6550 and 1.6400 area. Immediate resistance at 1.6695 (yesterday’s high). Break above that area should be seen as bearish failure confirmation and trigger further bullish momentum targeting 1.6842 area.