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  • GBP/USD’s daily chart shows a falling wedge breakout.  
  • The breakout is backed by bullish readings on key indicators.  

GBP/USD jumped 1.85% on Thursday, the biggest single-day gain since March 19.

The pair is currently trading largely unchanged on the day at 1.2436, having hit a 15-day high of 1.2469 in the overnight trade.

The daily chart is reporting a falling wedge breakout – a bullish reversal pattern, which indicates the pullback from Sept. 20’s high of 1.2582 has ended and the rally from Sept. 3’slow of 1.1958 has resumed.

The pair, therefore, could challenge the resistance of the trendline falling from March highs in the short-term. As of writing, the trendline resistance is located at 1.2550.

The 14-day relative strength index has moved back above 50 and the MACD histogram has crossed above the zero line, supporting the bullish case.

Daily chart

Trend: Bullish

Technical levels