GBP/USD continues to trend higher into next week
GBP/USD is well and truly back on point this week, with clear progress being made towards the upside. With the Greek ‘resolution’ also came a settling of financial markets, and it makes you appreciative of a clear trend. On this occasion, we are clearly seeing a strong move higher, and I expect to see further gains as we move through the European session. Much like the previous two legs higher, I expect the price to run past the previous swing high ($1.5675) before retracing once more.
The signal to move out of a long position is likely to be another bearish engulfing pattern, which we have seen mark the tops of both the recent legs higher. We have also seen both pullbacks come in around 50%, which gives us a reversal target once the price does turn around once more.
Overall I am bullish for a move towards the $1.5747 region, which is likely to be followed by a bearish engulfing pattern and 50% pullback. If previous price action is anything to go by, my bullish view becomes negated below $1.556.