- GBP/USD setting up for a bullish continuation above monthly support.
- The 4-hour resistance needs to be overcome first.
The following top-down analysis shows the price above a critical monthly resistance from which the bulls may seek higher grounds yet.
Bulls are now up through the monthly resistance.
However, there is room for a significant retest of the new support structure, so the upside could well be anchored on the lower time frames.
Weekly price action shows a test of the prior resistance and a confluence of the 50% mean reversion level.
Bulls are taking on the bear’s commitments for potentially the final attempt before a significant breakout and continuation of the uptrend.
The prospects of an upside continuation are solid, although it is worth noting that daily chart’s stubborn resistance which is being tested at the time of writing.
However, bulls can take conviction on a break of the 4-hour resistance and a subsequent restest of what was old resistance now turning new support.