The exchange rate of the pound against the dollar made significant progress last week. As can be seen from the daily chart below, the GBP/USD quotations on Tuesday defeated the key resistance of 1,300.
On the following day, the price set a new peak, but the closing of the session took place at a level lower than the opening. Similar during Thursday’s session.
On Friday, the price moved back to 1.3000 and reached the average channel EMA 10/20 (dynamic support). However, by the end of the week, all the losses had been made up and a candle with a long bullish wick had formed on the chart.
Friday’s formation gives a chance for growth after a successful rebound from confluence of support, where the horizontal level coincided with the dynamic support. If this scenario materializes, buyers can push prices up to January maxima of 1.3216. The key resistance is the zone between 1.3257 – 1.3300, which includes the maxima of September and October 2018.