GBPUSD is pausing a 2-day rally that took the pair to its highest level since June 19, 2016, in the 1.38 handle. The outlook remains bullish after the market surged above 1.3600 last Friday.
The immediate bias is neutral but there is scope for a re-test of yesterday’s high of 1.3819. From this point, the focus turns to the 1.4100 area.
Dips are expected to find support in the lower 1.37’s (between yesterday’s low of 1.3724 and 1.3700). Major support is seen at 1.3600.
The odds for significant losses look limited at the moment and the broader trend higher looks well-rooted in the short and medium term, with trend and momentum indicators being bullish in both time frames.
