Slowly but steadily the British Pound has rebounded from the lows set in September against the USD and is now looking more optimistic since reaching the November 2007 highs. Apart from the Brexit noise, on the technical side, the currency has the possibility of making a double-bottomed pattern that could push GBP/USD to levels above $1.60 or even reach the July 2014 highs of around $ 1.71. However it is important to bear in mind that it is a very long term chart analysis, monthly bars, meaning any movement will take a considerable time, but if the recent rebound continues and if the resistance at $1.315 is broken, the technical analysis runs in favour of the Bulls.
This does not mean that the route is only roses, I remember that the climbs almost always take longer than corrections, which are generally more violent. however, for those exposed to the English currency, facts need to be taken into account and which gives even more indications of Brexit’s future than the political soap opera. Admittedly, it is not a trade for everyone, as the time is long, but on the other hand these are signs that usually have a much higher reliability than the shorter bars, even in relation to the daily ones.
