FX.co ★ Short-term technical analysis on GBPUSD.

GBPUSD has broken above the short-term resistance at 1.2520, reached as high as 1.26 and price is now back testing the break out level. Price continues making higher highs and higher lows, respecting the upward sloping support trend line from its recent lows.

Blue rectangle- target

Red rectangle- resistance

Green rectangle -horizontal support

Green line- support trend line

GBPUSD is expected to continue higher towards the blue rectangle. This is our short-term bounce target. We were warning traders of a possible reversal to the upside since the bullish RSI divergence was seen. Back when price was trading around 1.22. Our bullish setup has been fulfilled and in the near term we expect more upside to be seen as long as price holds above the green rectangle.