USD-weakness was a dominant motif in markets because last March -- and also the latter-portion of past week introduced a counter-trend bulge in that subject. But provided time, this might have been month-end flows, therefore for those considering bearish USD-themes, GBP/USD can stay of interest.
The study within article relies on cost action and graph formations. To find out more about cost action or graph patterns, take a look at our DailyFX Education section.
The British Pound has up to now enjoyed a very powerful beginning to this year, even as the nation continues to grapple with lockdown-driven financial strain. However, the speed of vaccine rollout was encouraging, particularly in comparison to southern Europe, which has helped to induce some controversy during the British Pound.
Against the US Dollar, the British Pound withdrew via an integral cost a week when launch over the 1.4000 psychological degree. And bulls did not stop there, possibly, as buyers continued to push all of the way around 1.4243, where cost activity started to pullback before the 4250 psychological degree.
Since revved up to this new high last Thursday, costs happen to be pulling back, finally locating a little bit of support round the 1.3900 level. That is so much helped to stabilize cost actions, keeping the door open for bullish continuation scenarios from the pair.
Why is this installment so interesting is how constant the bullish tendency has priced in because late-September, as may be found below from the trend channel that has held that the majority of cost action over the last couple of months.
Moving down into a shorter-term graph, and also we can observe buyers grasping for assistance around that 1.3900 degree. This may keep the door open for bullish continuation scenarios for trend-based plans, searching for deals to return towards a re-test of their 1.4000 emotional level.