The cable has been trading within a horizontal range for sometime now. Currently, the pair has touched the upper line of the pattern. Where will it go from now?
The recent remarks by the ECB President Mario Draghi have ignited renewed risk taking in the marketplace. The President pledged to do all within his powers to support the euro. And, this has eased fears of a potential euro zone breakup. Among the beneficiaries of this positive report is the pound, which has recorded steady gains since then.
As earlier mentioned, technical analysis on the GBP/USD reveals it has touched the top of the horizontal range. If the pair convincingly breaks out of this pattern, it may encounter an immediate resistance at 1.6000. On the other hand, if it starts losing its gains, it may halt at the support level at 1.5570.
The best case scenario would be to wait for the pair to make convincing runs from here. Otherwise, you may be caught on the wrong side of the trade if you decide to pull the trigger now.
DISCLOSURE & DISCLAIMER: THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT TO BE CONSTRUED AS SPECIFIC TRADING ADVICE. RESPONSIBILITY FOR TRADE DECISIONS IS SOLELY WITH THE READER.