Good Day!
We will be trading GBP/USD this month so if you would like to feel free to brief yourself on the current situation:
GBP/USD
Cable rises strongly to as high as 1.9940, breaking mentioned 1.9913 high as expected. At this point, further rise is still expected to follow as long as cable stays above 1.9861 minor support. Next upside target will be 61.8% projection of 1.8517 to 1.9913 from 1.9183 at 2.0046. Below 1.9861 will suggest a short term top is possibly formed and bring pull back to 1.9781 spike low again but downside is expected to be contained by 1.9723 support and bring rally resumption.
In the bigger picture, rise from 1.8090 is interpreted as having first wave finished at 1.9142, subsequent second wave correction completed at 1.8517. Third wave rally has completed at 1.9913 while the fourth wave correction has already ended with three subwaves down to 1.9183. Current rise from 1.9183 will likely be the final advance of this rise from 1.8090. The channeling property of the terminal points of 1.9142, 1.8517, 1.9913 and 1.9183 is supporting this case.
Having said that, resistance should significantly increase as cable approaches 61.8% projection of 1.8517 to 1.9913 from 1.9183 at 2.0046. Also, consider that cable will be near to resistance zone of 2.0106 (92 high) and 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067.
With bearish divergence on condition still being displayed in weekly RSI as well as daily MACD, risk of medium term reversal will significantly increase. Hence, focus will be on reversal signal as cable approaches this zone.
On the downside break of 1.9591 support will indicate that the rise from 1.9183 has completed. More importantly, this will be the warning of an early completion of the whole rise from 1.8090. Focus will then be on above mentioned channel support (now at 1.9353).