- GBP/USD trades around 0.32% higher on Wednesday but stops just shy of the psychological resistance.
- The Fibonacci Extension matches up with a key level from a previous consolidation.
GBP/USD daily chart
GBP/USD is still in quite a strong uptrend on Wednesday as the greenback weakness continues. On the lower timeframes, the market is making consistent higher highs and higher lows with no top in sight. On the daily chart, however, there is an old level that looks pretty sticky. There is a multitude of factors that could halt the progress of the rampaging pound.
First of all the round figure at 1.30 could be a target for some traders to take profit causing it to be a natural resistance zone. The last time the price had a strong consolidation the area was also the mean value area in the distribution zone between 1.2770 and 1.3285. Lastly, there is also a Fibonacci extension zone in very close proximity. You could choose between the 161.8% and 132.6% zones but the general area looks very firm.
The indicators on the chart are obviously positive right now. The MACD histogram bars are still growing in stature and the signal lines are extending above the mid-line. The Relative Strength Index is in an overbought zone but this could just mean after a small pullback the trend could continue. Overall, this uptrend is still very much intact. The 1.30 level could still be a major target for the bulls but once the price makes it there there could be some resistance.
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Additional levels
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