GBPUSD - Testing Key Resistance Zone at 1.38-40

Cable has broken above 2017 highs and the 2014 bearish trendline and is testing the confluence of the pre-Brexit support turned resistance at 1.3831 and the 38.2% Fib, retracement of the 2014-17 downtrend

RSI is showing a bearish divergence vs price which adds further warning that we may see a pause in upward momentum and we are also right up against the regression trendline of the 2017 ascending channel

If we can clear 1.4000 with conviction then we could see a move to 1.44/45 which is the next significant Fib. level and the 200SMA. Failure to clear and expect a pullback to the centre line of the regression channel around 1.36.

Remain short term bullish as long as we stay within the regression channel and above the 50 SMA