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GBPUSD looks for further upside towards 1.3700

Long
FX:GBPUSD   British Pound / U.S. Dollar
GBPUSD rises to a two-week high after confirming the bullish head-and-shoulders chart pattern the previous day. The cable pair stays bid around 1.3655 inside a short-term rising channel during early Monday. Given the confirmed bullish formation breakout and firmer MACD signals, the quote is likely heading towards the 200-SMA level near 1.3710. However, any further upside will be challenged by the upper line of an ascending trend line from September 29, near 1.3745. Also challenging the pair buyers is the late September’s peak near 1.3750.

Meanwhile, pullback moves may aim for the stated channel’s support line, around 1.3600. However, buyers may remain hopeful until witnessing the downside break of the previous resistance line near 1.3595. Even if the GBPUSD sellers manage to conquer the 1.3595 and defy the bullish chart pattern, last week’s swing low around 1.3580 will question additional losses before directing it to the previous month’s low of 1.3411.