The GBPUSD pair was flat during the US session on Wednesday and was trading at around 1.4160 at the time of writing.

So far, bulls have been enable to breach the current cycle highs of 1.4240 and the Pound has been consolidating for the better part of May. However, it looks like a classic bullish consolidating in the uptrend triangle, which normally leads to a violent breakout higher. 

Thus, if the resistance at 1.4240 is broken to the upside, Sterling might continue further higher as stop-losses of short positions will be hit. The next medium-term target will most likely lie at 1.45.

Alternatively, the short-term support appears to be at the uptrend line near 1.41. If not held, further decline toward 1.40 could occur. So far, bulls have been enable to breach the current cycle highs of 1.4240 and the Pound has been consolidating for the better part of May. However, it looks like a classic bullish consolidating in the uptrend triangle, which normally leads to a violent breakout higher. 

Thus, if the resistance at 1.4240 is broken to the upside, Sterling might continue further higher as stop-losses of short positions will be hit. The next medium-term target will most likely lie at 1.45.

Alternatively, the short-term support appears to be at the uptrend line near 1.41. If not held, further decline toward 1.40 could occur. 

Source: https://www.axiory.com/technical-analysis/gbpusd-stuck-near-cycle-highs

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About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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