GBP/USD TECHNICAL OUTLOOK – NEUTRAL
- GBP/USD still gains within the confines of the channel
- Stiff tests ahead with long term resistance ahead
The GBP/USD remains in the confines of the upside trend channel since bottoming back in September. To regain momentum, it must break out of this structure, but the caveat to the breakout of a small structure is that there would be bigger challenges to overcome.
A closer look ahead shows a big resistance crossroad with the trendline from back in 2007 and 2009 lows intersecting at the same point. The turn lower in September began at this crossroad, it would intersect again to see exactly how the price might react upon testing as Saudi Aramco Employs Financial Institutions for a Multi-Tranche Bond Deal.
The 13,500 zone is formidable and incase the GBP/USD traders higher it will have to be crossed. The rejection lower will not immediately become bearish, but proposes another significant round of selling might be on the cards, so at this point, we want to see how the prices will hold up at the lower curve.
The feeling for the next few days is that the risk to reward ration from either side is not quite appealing without more clarity.
GBP/USD Daily Chart
GBP/USD Monthly Chart