Over the past few trading sessions, the GBP/USD currency pair has been making concerted efforts to appreciate in value against the US Dollar. The price has witnessed several rebounds on the dynamic trendline, indicating strong bullish momentum.
During the Asian trading session, the currency pair experienced a bullish impulse, driving its value upwards. However, it subsequently retreated to the 38.2% Fibonacci retracement level. At this point, it is likely that the price may test the previous support level before embarking on a fresh long impulse.
Based on our analysis, we are of the view that the currency pair is poised for a long continuation in the direction of the prevailing uptrend. This is supported by a good risk-reward ratio, which further strengthens our conviction. As such, we recommend a long position in the GBP/USD currency pair.