TechnoMeter

Bulls of GBP/USD will be encouraged by a well-defined pennant formation on the daily chart (see below), a continuation pattern that points to further strength after the pair’s climb from 1.2113 on March 14 to 1.2613 on March 27. If the formation works as it should in theory, a break to the upside above 1.2465 in a few days’ time could lead to an advance equivalent to the height of the “flagpole” – that five-big-figure advance between March 14 and March 27 – taking it to 1.2965.



Moreover, there is plenty of support for the exchange rate at its current level. It has already held twice this week at the trendline support from that recent low on March 14, while the 50-day and 100-day moving averages both lie just below the current 1.2470 at close to 1.24.

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