From a technical perspective, the two-way price moves since the beginning of this week point to indecision and warrants some caution for aggressive traders
GBP/USD held on to its intraday gains and once again advances to test 2020 high around the 1.36 region.Looking at the technical picture, the pair on Wednesday broke through a near one-week-old descending trend-line resistance on the hourly chart . This, in turn, supports the additional gains amid optimism over the possibility of a last-minute Brexit deal.
That said, traders might still wait for some follow-through buying beyond the 2020 swing highs, around mid-1.3600s, before placing bullish bets. The GBP/USD pair might then make a fresh attempt to reclaim the key 1.3500 psychological mark . The momentum could further get extended to last week's swing highs,and above that the pair seems to prolong its recent strong upward trajectory.
On the flip side, bearish traders might now wait for sustained weakness below the 1.3400 mark. A subsequent fall will be seen as a fresh trigger for bearish traders and drag the GBP/USD pair to the 1.3300.The pair might then turn vulnerable to accelerate the fall back towards challenging the lower boundary of a three-month-old ascending trend-channel. The downward trajectory could further get extended to the weekly lows, around the 1.3200-1.3190 region.
