As I had expected, the GBPUSD continued it’s bullish momentum yesterday, hit my long target at 1.6740, topped at 1.6842 but closed lower at 1.6757. We have seen in the last several days, how a triangle, a simple classical technical tool can be used effectively to gain some profitable trades as you can see on my daily chart below.
On h4 chart below, from a Fibonacci retracement point of view, the pullback from 1.6842 to 1.6704 yesterday is actually a normal correction as 1.6704 area is the 23.6% Fibo retracement area of 1.6261 – 1.6842 and now price seem to reject to move below that area, indicating potential further bullish continuation. However, of course we need a clear break above 1.6842 to confirm bullish continuation scenario with 1.7042 as potential technical target. Break below 1.6704 should lead us into no trading zone but I still prefer a bullish scenario at this phase.