GBPUSD is about to break above key weekly resistance that was tested three times before. This is the fourth time GBPUSD is at the 1.35 resistance area and the second time during the last 13 months. The last two times price was at current levels got rejected and pulled back at least 800pips. This time we see a breakout coming.
Red line -resistance trend line
Green rectangles - attempts at 1.35 resistance
GBPUSD is clearly in an up trend as price is making higher highs and higher lows since last January lows around 1.15. Price will remain in a bullish trend as long as price is above the green trend line support. This support is now at 1.31. Breaking above 1.35 and holding above it is key for a continued upward move towards 1.42-1.43. The RSI so far is not making a higher high as price is relative to the Summer high. It is too soon to tell if we will see a bearish divergence. Nevertheless there is no reversal sign on the horizon, so we remain in the bullish camp.
