FX.co ★ Short-term technical analysis on GBPUSD for October 18th, 2022.

Red line -horizontal resistance

Blue line- support

GBPUSD is trading around 1.1320 in a short-term bullish sequence of higher highs and higher lows. Since the 1.0923 low, price is moving higher with potential to test recent highs at 1.1490 area. GBPUSD is in a bullish short-term trend as long as price is holding above the blue upward sloping trend line. This support trend line is at 1.1160. The horizontal resistance at 1.1490 if broken will provide us with a bullish signal and with a potential target at 1.20-1.21. The bullish setup looks more dominant as price is making higher highs. Bulls need to defend the blue support trend line and not break below 1.0923. Bears have a lot of work to do in order to reclaim short-term trend.