Pound Is About to Rise vs. Dollar (GBP/USD), This Chart Shows

The pound/dollar currency pair (GBP/USD) has shown obvious strength on the daily chart over the last month, pushing up through 1.2335 and then holding above that level on subsequent retests.

Over the last few weeks, the daily chart has remained buoyant and shown resiliency after each attempt by sellers to push the pound lower against the greenback. 

We can now see an inside pin bar combo signal, and it's logical to assume the pair will move higher from this pattern, perhaps significantly higher. (An inside pin bar combo signal is a technical pattern where an inside bar is also a pin.)

Entering the pair on the long side now appears to be a promising trade. Resistance is not seen until the 1.2850 area. As always, trade at your own risk.

copyright 2016 LearnToTradeTheMarket.com

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

More from Currencies

Bank of England Holds Rates Steady, But Vote Shift Signals Hawkish Tone

Bank of England Holds Rates Steady, But Vote Shift Signals Hawkish Tone

Bitcoin Today: Prices Close to Flat in Low-Volume Trading

Bitcoin Today: Prices Close to Flat in Low-Volume Trading

Markets Wobble as U.S. Readies More China Tariffs

Markets Wobble as U.S. Readies More China Tariffs

Watch These Two Crypto Experts Fiercely Debate the Future of Regulation

Watch These Two Crypto Experts Fiercely Debate the Future of Regulation

Bitcoin Today: Prices Attempt to Rally Following Early Weakness

Bitcoin Today: Prices Attempt to Rally Following Early Weakness