GBP/USD Hits Resistance on Pennant Formation

GBP/USD saw a flood of momentum push price action upward between the start of March and the end of May. Since the end of this upswing, the pair has traded in a consolidating pennant formation. At the current moment, the Pound finds itself fading from resistance that dates back two months. A sell off here would not be surprising. But one must recognize that if a pennant is formed once a bullish run has occurred, it is more likely to continue the upward trend.