Bullish Breakout :
- The GBP/USD did not respect the resistance at 1.6270-1.63 level after stalling there for a short period.
- It is now in bullish continuation in the US session.
- The next resistance area is near 1.6460.
- The daily chart shows the next target to be at 1.6546 in a bullish continuation mode. This is 78.6% retracement and a the May high.
- above that we can be looking at the 1.6745 pivot, 2011 high.
- As we break above 1.63, this should become support for the bullish scenario. Note that this is also where the 200SMA is.
- The RSI in the H chart also break above 70, and the reading should find support above 40 in a bullish market.
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Fan Yang CMT
Chief Technical Strategist