FBS: GBP/USD on the rise
GBP/USD extends the upside on Friday, testing fresh 2-week highs around $1.6190. Small bearish retracement in the Asian trade was stopped by the $1.6140 level. Combination of the overall USD sell-off with optimism on the UK economy keep supporting the British currency. Yesterday's data showed UK retail sales rose above forecast in September.
On the back of the recent bullish developments, we went long on the cable from $1.6165 with an initial target of $1.6250 and a stop at $1.6130. Yesterday the technical picture changed dramatically: cable jumped by more than 200-pips at once. Daily close above $1.6160 is a good sign for the buyers. You should also note that cable broke above the H4 bearish Ichimoku, taking it into the positive zone. However, the pair is overbought now, so the bulls may encounter some resistance. The $1.6200/10 area could slow the upside.
Chart. H4 GBP/USD