GBP/USD rose during the session on Tuesday as the top of Monday’s shooting star has been broken. This is a bullish sign, and as such we believe that this market will continue to rise over the next several sessions. With this being said, the 200 day moving averages just below current prices well, and this of course is bullish also. The 1.58 level continues offer support, and we think that this market will eventually grind its way to the recent highs at 1.63 or so.
With this being the case, if you are willing to hang on and let the volatility be, you could find that this pair could be much higher by the time we exit for the holidays. This is a longer-term set up in our opinion, and we do think that eventually we can break above the 1.63 handle as well.
Written by FX Empire