- GBP/USD trades 0.16% higher on Monday but hits another YTD high.
- There are two key resistance points the bulls need to target.
GBP/USD 4-hour chart
GBP/USD has been on a great run of late and although it was a bank holiday in the UK the bulls were still out. The price hit a high of 1.3396 narrowly missing out on the 1.34 handle. This is the highest level in the pair since 16th December 2019 and the 2019 high at 1.3515 is the next resistance (black line).
Looking closer at the chart the psychological resistance at 1.34 matched up with a trendline at the top of the wedge formation. If the price does break out of the pattern then the aforementioned 1.3515 level could be the zone that the bulls target next.
The indicators are still looking positive at the moment too. The Relative Strength Index is above 50 and just under the overbought zone. The MACD histogram is still green and the signal lines are holding some way above the mid-level.
Overall the pair is still in a firm uptrend and it seems like there is no stopping the trend. The dollar has been weakening against most of its major counterparts for a while now. The non-farm payroll data could be a catalyst for a change and tomorrow the lasted Manufacturing PMI data is due.
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