By Russell Glaser
The Cable has put in a solid performance this year, booking gains of 2.4%. The pair looks to continue its ascension towards the falling trend line off the August 2009 high.
Looking at the weekly chart, the GBP/USD has traded between a defined triangle pattern with the lower line rising off of the 2008 lows and the upper line declining from the August 2009 high.
As the pair begins to appreciate during January of this year, a new higher target level takes shape.
As such, traders should target the upper line of the triangle which comes in this week at 1.6180.
A breach above this level would target 1.6560, where falling trend line off of the November 2007 high is found.
Rising weekly stochastics and last week’s candlestick that closed with a shaved head support more gains in the pair.
Support for the GBP/USD is located at 1.5340.
GBP/USD – Weekly Chart
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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