GBPUSD back above short-term uptrend line

The GBPUSD pair is surging today and it was half a percent higher during the London session, trading at around 1.30. From its intraday lows, the cable is now up nearly 150 pips as it managed to completely erase a daily loss of 0.40%.

Today’s surge brought the Pound back above the short-term bullish trend line, which is now near 1.2950. As long as sterling trades above this trend line, the short-term outlook seems bullish.

If the GBPUSD pair jumps above the psychological level of 1.30, more bulls could jump in and the next resistance would then be near 1.3070, where October’ highs are located.

Alternatively, if Pound declines below 1.2950, we could see a steeper decline toward today’s lows of 1.2870.

The greenback seems to be under pressure today, which might push the GBPUSD pair further higher. However, the medium-term trend seems neutral as the pair has been moving sideways since the summer. Therefore, this type of market is suitable for swing-traders, but not for investors.

 
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