GBP/USD - Approaches Daily Channel Resistance Near 1.5800
GBP/USD continues to move higher within the confines of a rising channel formation in the hourly timeframe. Channel resistance currently lies near 1.5850, in the neighbourhood of the 200 day moving average.
Also, when viewed from a daily perspective, we see that there is scope for a degree of supply to manifest close to the resistance of a larger daily falling channel. This resistance currently lies near 1.5800.
Similarly the 200 day moving average, currently at 1.5962, is expected to act as a cap to trade should the region close to this average be met.
An eventual return to long-term trend-line support from 1.3503 cannot be ruled out. However, should this move take place and be associated with a fall under the neckline of the head and shoulders formation, we would not expect to see a great deal of momentum follow through.