Blue line - support trend line
Green lines- Fibonacci extension targets
GBPUSD is trading around 1.2110. In our previous analysis from October 20th we suggested that the bullish setup was targeting 1.1635 and why not later 1.20. Initially price reached the first Fibonacci extension target at 1.1635, pulled back and respected support. On a later analysis we confirmed that we are on track on reaching the 1.20 target if price were to break above the 1.1640 highs. Today price has reached the second Fibonacci target and the RSI has entered overbought levels in the 4 hour chart with no signs of a bearish divergence. Short pull backs are expected but momentum remains bullish and we should expect to see higher highs over the coming weeks. At 1.28 we find the next Fibonacci target. However I believe we should focus in the near term target first which is 1.23.
