GBPUSD surged upon the release of BOE Inflation Report yesterday. Candles have since then broken above the major trend line, indicating the possible start of a major retracement after months of losses. Paying attention to the Fibonacci Retracement, the nearest level of retracement lies at 23.6% at 1.5479 where we await for signs of resistance.
Bullish momentum starts to increase and candles approach Fibonacci Expansion 127.2% at 1.5450 where we await exhaustion. Yesterday’s release of BOE Inflation report drove prices up and with the release of weak Retail Sales data in the U.S, prices continued to soar. Should prices continue to rise above 1.5450, prices may test 1.55 where it could possibly pose as a resistance.
Focusing on H1 chart, candles have approached Fibonacci Expansion 200.0% at 1.5401. However, candles have yet to give a clear indication of exhaustion and may continue to rise towards 261.8% at 1.5464. Bullish momentum of the pair remains strong and traders should await for opportunities to engage for longing trades.