GBP/USD: pullbacks above 1.55 reinforce bullish bias
GBP/USD rallied on Tuesday, reaching as high as 1.56, before tracing back to close at 1.556, forming a small green candle on the daily chart. The bulls continue to have the upper hand this morning, suggesting that short-term traders could continue to buy the market on short-term dips.
We expect this market to ultimately test July’s highs at 1.575. In the meantime there are choppy waters ahead. Look out for pullbacks all the way down to 1.55. As long as we remain above that area, any pullback can be seen as a good buying opportunity. In the alternative scenario, a consistent break below 1.55 would open the door for 1.546 and 1.538.
Published: 4 September 2013
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