Is GBP/USD still heading to 1.25?
The GBP/USD has now had a few days to consolidate recent gains and although it has formed a potential double top pattern at 1.2245ish, this might turn out to be a false signal for the bears.
We haven't seen a proper dollar "buy" signal yet, with the dollar index continuing to break support after support.
While I am not uber bullish on the pound, price action has not been exactly bearish and many resistance levels have broken down despite everything going on in the UK.
That's telling us not to be bearish on the GBP/USD yet. So, it may well go on to break this 1.2245 level and head to 1.25 before potentially turning.
I would remain cautiously optimistic on the cable but quick to change my view in the event we see a proper reversal signal.
By Fawad Razaqzada on behalf of FOREX.com
We haven't seen a proper dollar "buy" signal yet, with the dollar index continuing to break support after support.
While I am not uber bullish on the pound, price action has not been exactly bearish and many resistance levels have broken down despite everything going on in the UK.
That's telling us not to be bearish on the GBP/USD yet. So, it may well go on to break this 1.2245 level and head to 1.25 before potentially turning.
I would remain cautiously optimistic on the cable but quick to change my view in the event we see a proper reversal signal.
By Fawad Razaqzada on behalf of FOREX.com
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