GBP/USD has posted a recent high at 1.3644, rising from a late January 1.3358 low. Benjamin Wong, Strategist at DBS Bank, expects cable to extend its up move towards resistance around the 1.3830 region.

Bullish inverse-head-and-shoulders pattern spotted on the weekly charts

“The GBP Trade Weighted Index has broken higher above the 81.43 resistance marker – this should imply growing and widening GBP strength. Its real hurdle lies about 3.7% higher, around the 86.00 mark. This explains how GBP has stayed resilient since late January.” 

“On the weekly chart, GBP is fashioning a bullish inverted-head-and-shoulders pattern. Clearing 40-week moving average 1.3670 should fuel another rally where it should first eye resistance at 1.3834 and 1.3878. In that sense, it sets off a bullish trigger at 1.3749 that shifts the radar towards 1.3983, last July’s peak.”