The GBPUSD has been tracking an upward sloping trend line since the low on September 5th. That line has been tested a number of times with one failed break lower yesterday. The integrity of the line was reestablished today with additional tests. That line comes in currently at the 1.6006 level and will be eyed for bullish/bearish clues. As long as the price can stay above, the bias remains positive/bulllish for the pair.
On the topside, the price did take out the high from Friday’s trade at the 1.6032 today, but the not by much (high reached 1.60347). A move above will next look toward the 1.6060-65 area where the pairs price formed a reverse-V top from mid April to mid May. Trend lines that come down from the April and August highs come in at 1.6129 and 1.6184 levels respectively and are other upside targets if the bias remains positive. The range for the day is 56 pips vs a 20 day average of 75 pips. So there is room to head up toward 1.6060-65 area. Look for profit taking sellers on the 1st test with stops above.
