GBP/USD (daily chart shown below) has bounced off its 50-day moving average after pulling back slightly from a conspicuous double-topping pattern. That double-top had its first top in mid-February at the 1.6821 four-year high, and then just a few pips lower last week at 1.6819.
The pattern occurs in the midst of a strong bullish trend that extends back to the July 2013 double-bottom low around 1.4800.
After hitting the second top late last week, the currency pair spent the next several trading days falling back towards its 50-day moving average before rebounding on Tuesday.
Any breakout above the double-top pattern and the noted 1.6821 four-year high would confirm a continuation of the strong bullish trend that has been in place for the past nine months.
In the event of this breakout, the major upside target within long uncharted territory resides around the 1.7000 psychological level, which is also around a high extreme reached in mid-2009.
Key downside support on a further pullback currently continues to reside around the 1.6500 area.
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