The British pound last week was extremely bullish across the board.

Before the spectacular run up of GBP, I’ve detected an AB=CD pattern in the 4-hour chart which is confirmed with an RSI BAMM setup. With these two patterns, the probability of a reversal is high.

I went long on the British pound last week and made at least 290 pips.

This run is not over yet. As you can see in the daily chart below, GBP bounced off the 38.2% fib retracement having a calculated target at 1.8665 (224% fib extension) – 78.6% fib retracement in the weekly chart.

Once the price closes above that resistance line (blue line), that’s a buy for me.

I’m so bullish in the British pound that I’m not going to wait for it to close above that resistance line. As you know, price does not go straight up thus I am going to take advantage of this fact and buy on pullbacks.

On the hourly chart the possible retracement prices are:

• MA(800) – 1.62
• Near 38.2% – 1.6120
• PRZ (61.8% – 78.6%) – 1.5857 / 1.5973

Updates on this trade will be posted in the Forex Forum – GBPUSD