The GBP/USD currency pair has bounced back this week after a short-term pullback early on. The currency pair is currently enjoying a short-term bullish bias following 5-day decline between Jun 12-Jun 17.

On Friday, the GBP/USD currency pair appeared to hit a key resistance zone triggering a momentary pullback, but soon after, the pair was back up again to trade just below 1.2720.

GBP/USD Fundamentals Overview

The GBP/USD currency pair is trading at the back of a busy week from both political and economic perspectives. In the US, the Federal Reserve issued a statement that left the door open for a potential rate cut at some point this year. This was seen as a dovish view of the economy, which increased pressure on the greenback.

On the other hand, the political scene in the Uk continues to gather momentum towards the succession of PM Theresa May with Boris Johnson currently tipped to take the mantle. And given Johnson’s views on Brexit, traders are now expecting a hard Brexit come October.

GBP?USD Technical Analysis (the 60-min Chart)

The GBP/USD currency pair is currently trading within a sharply ascending channel that formed at the beginning of this week. This suggests that the bulls maintain control in the short-term.

As such, the bulls will be optimistic going into next week. They will target profits at around 1.2760 or higher at 1.2796. On the other hand, the bears will hope that the current trendline resistance holds firm to trigger another pullback.

The bears will target profits at around 1.2652 or lower at around 1.2647 going into next week.

GBP/USD Technical Analysis (the Daily Chart)

In the daily chart, the GBP/USD currency pair appears to have performed a double-top reversal pattern at the start of last year which marked an end to a long bullish run dating back to late 2016.

But with the current reversal, the bears will be looking to retain control if the US  Federal Reserve does not cut interest rates. Long term profit opportunities for the bulls can be found at around 1.3015 while the bears should look to pounce at around 1.2500.

In summary, the GBP/USD currency pair appears to enjoy a short-term bullish bias but the bears will be more optimistic on a long-term basis.