Trend warriors gather ’round!
GBP/USD may have gotten rejected from a psychological level but it looks like it’s heading for a key support zone!
Is the pair gearing up for even more gains this week?
GBP/USD: 4-hour
GBP/USD 4-hour Forex Chart by TV
I don’t know if you noticed, but GBP/USD has returned to making higher highs and higher lows since the start of the month when it bounced from the 1.2300 area of interest.
The pair is now trading closer to 1.2800, a high that the pair had not seen since May last year.
What makes Cable’s setup interesting today is that it’s heading for the 1.2650 – 1.2700 zone that’s near the S1 (1.2650) of today’s Pivot Points.As you can see, the level is also not far from the 38.2% Fibonacci retracement of June’s uptrend as well as a resistance zone in late May.
Are we looking at a trend continuation in the making?
Buying at the 1.2650 – 1.2700 zone (or even at current levels) would set you up for a good entry in case GBP/USD isn’t over its June uptrend.
Cable could head for its June highs near 1.2810 or hit the 1.2900 – 1.3000 area of interest from last year.
What do you think? Does GBP/USD have enough buyers to extend its uptrend?