Alex Joyner from Faraday Research is tracking a possible move higher in GBPUSD as the pair edges closer to a key zone of resistance. “On the daily chart we can see the pair has been moving within a long-term ascending channel since late April. At the start of last week the price action bounced up from the lower support of this formation and has been moving higher ever since.

The four hour chart shows how a spike in demand for the pound has now taken cable firmly into a key zone of resistance sitting just below the psychologically significant 1.57 level.  This is the fifth time the price has hit this zone in the last month and upwards momentum seems to be building. If the pair can break decisively above 1.57 we would go long, expecting a significant move higher. Alternatively, if resistance holds for a sixth time we could see the price rotate back down the bottom of the channel.”