The GBP has staged a remarkable rally over the last week and I think it’s been a little missed by forex watchers. Brexit developments have had a positive impact and we are now getting back to some of the more recent highs that we’ve seen.

With that in mind, I’m paying very close attention to 1.3600. I think that is the major resistance level to pay attention to. If we can hold, I feel that there is a fair bit more upside to come. The question is really which of the two currencies – USD or GBP – is the strongest. At the moment it appears the GBP is winning. Tax cuts might change that.

To the downside, there are a number of good support levels that I would consider buying. I like 1.3450 best a potential level to go long. Any pullback in that region would be tempting with the current momentum.

Below that 1.3300 is a very major level. However, if we were to pull back that far then I would suspect the USD has really taken back control.

GBP/USD – 240 min Chart.