GBP – The pound continues its strength, currently testing the neckline of a large double bottom

The pound against the dollar has broken through the downtrend line extending from the January 27 high of 1.3867. The exchange rate has formed a large double bottom this year, with levels at 1.3159 on March 31 and 1.3139 on June 24. The more crucial level now is the neckline at 1.3650/60. A break above this level would technically lead to a stronger upward move, potentially reaching 1.38 and then the January high of 1.3867, with a key target of 1.40. Support levels are seen at 1.3570 and 1.3520, with the next levels expected to be the 25-day moving average at 1.3450 and 1.33.

Forecasted range:
Resistance 1.3650/60** - 1.3800 – 1.3867 - 1.4000*
Support 1.3570 – 1.3520 - 1.3450 – 1.3300
 

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