Forex: GBP/USD rally may be set to extend
FXstreet.com (San Francisco) – The steady ascent seen in GBP/USD this week stalled in the 1.5670 area overnight, ending the NA session at 1.5645 vs. 1.5663 as the pair consolidates around 1.5640 after falling as low as 1.5580.
The mentioned price action resulted in the print of an inside bar candlestick formation on the Daily chart, which also happens to be a Pinocchio bar.
Having formed at descending trendline resistance (1.5776/1.5721 peaks), the recent action suggests GBP/USD is carving out a continuation pattern with immediate resistance in the 1.5675 area, a break of which could attract heavy buying interest, opening scope to test further resistance in the 50% Fibonacci retracement zone of the 1.6296/1.5268 downswing around 1.5780.
“Recent highs at the 1.5660/70 area are the key resistance to overcome, to see the pair extending gains towards 1.5770 price zone this Thursday,” says Valeria Bednarik, Chief Analyst at FXstreet.com