The pair is testing the Tenkan-Sen line. The pair is going above the Ichimoku Cloud, which means an uptrend. A test of the Kijun-Sen line is expected at 1.1550, followed by growth to 1.1955. An additional signal confirming the growth will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 1.1305, which will mean further falling to 1.1210.

When GBP was trading at 1.1300 two days ago (25 Oct), we noted that it is mildly supported and could edge higher. After GBP soared, we highlighted yesterday (26 Oct, spot at 1.1460) that the strong boost in momentum is likely to lead to further strength. We indicated that the next resistance is at 1.1600. GBP took out 1.1600 in London trade yesterday and surged to a high of 1.1639. The price action suggests GBP is still strong and is likely to strengthen further. 

The next level to monitor is at 1.1760. The GBP strength is intact as long as it does not break the ‘strong support’ at 1.1440 (level was at 1.1310 yesterday).

Even from a technical perspective, the overnight sustained break through the 1.1475-1.1480 supply zone and the 1.1500 mark adds credence to the positive outlook, at least in the short-tem. Any intraday pullbacks might now be seen as a buying opportunities. That said, it would require a break above the 1.1740 level, where the September 2022 high (previous lower high) and the 100-day SMA are situated, providing a double cap on price, to indicate a reversal in the direction of peaks and troughs and an uptrending bias for the pair over the long-term.

Hawks have taken over GBPUSD above the TL

Oct 27 2022

Take Profit +6.27%

Holding time 20d8hr

1.13536

Entry price

1.20650

Take profit price