Pound has been exceptionally strong over the last 11 trading days, and dollar has been exceptionally week over the recent trading days. Although article 50 is expected to be triggered tomorrow, investors seem to remain bullish on the pair, breaking significant levels of resistance on an almost daily basis. Price has managed to close above 1.2550, and I believe we may test further highs along with this bullish momentum.

GBP/USD daily chart

Price has bounced off MS2; a bearish profit taking zone, where it appears bulls have entered quite aggressively, pushing price all the way up to MR1, a bullish target from MS1. I am aware the daily stochastic is overbought, and thus will be cautious with entry. Price has found near term resistance at 1.2600, with potential support eyed at 1.2550.

GBP/USD H4 chart

Price has started the week above WPP, and thus this pair has the capacity to reach WR2 or higher. Price is trading in a bullish channel/wedge, where support is eyed at WR1/1.25550. The H4 stochastic is also to the downside, and thus I may wait further for an entry.

GBP/USD H1 chart

Price is opening above dpp, which may be a potential area of entry should I see a reversal of current downside movement on lower time frames. This area is also around the 1.2550 psyche level, as well as being between the 50% and 38.2% fib retracement levels. Alternatively I will look for an entry around the DM2 area, which is the 61.8 fib retracement level, it is the bullish entry zone on daily pivots, it is role reversal support turned resistance and it is the bottom of my ascending channel/wedge pattern.

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