Despite a corrective setback, a base has built this week in the 1.5088/87 area to allow for a modest rebound and leave a positive bias into midweek.
Furthermore, the strong rally from mid-April through 1.5164 and late April push through numerous short-term resistance levels to hit 1.5500, maintains a bullish theme into May.
We see an upside bias for 1.5249; break here aims for 1.5299.
But below 1.5087 opens risk down to 1.5030/25, maybe 1.4957, which we would look to try to hold.
Short/ Intermediate-term Outlook - Upside Risks:
We see a more positive tone with the bullish threat through 1.5500.
Above here targets 1.5552/69, 1.5620, 1.5786, 1.5826, 1.5879 and maybe 1.6000 into May.
What Changes This? Below 1.4911 eases bull risks; through 1.4854 signals a neutral tone, only shifting negative below 1.4566.
Momentum: The 8-day RSI, short-term momentum is rising and has scope to go still higher this week.
A taster of the report above. To view the full GBPUSD report with screencasts, levels and more, click here
Remember, for a FREE trial of our FX and all other reports, sign up by clicking here
2 Hour GBPUSD Chart
Daily GBPUSD Chart