GBPUSD: Major Momentum

GBPUSD, Daily

In the Daily timeframe, GBPUSD has formed an ascending channel pattern. The price reached its high last year and crossed the upper Bollinger line. Also, the %R shows overbought, although bullish sentiment remains extremely strong.

• If the price breaks the resistance at 1.3140, the target will be 1.3280, corresponding to 161.8 Fibonacci;

• A rebound from the resistance will drop GBPUSD first to 1.3000 and then to 1.2860 towards the lower trend line;