The (GBPUSD) surged more than 200 pips yesterday from the day’s low to high, and is now retesting triangle resistance (on the daily chart).  With the GBPUSD near complete in its consolidation just above descending wedge resistance (on the weekly chart), the major bottom that began forming in July is now in its advanced stages.  Any daily close above triangle resistance (on the daily chart) will dramatically increase the likelihood of a retest of the psychologically key 1.25 whole figure level before month end.  A catalyst for further upside could arrive as early as today’s 830am EST US PPI, Friday’s UK GDP and US Preliminary UoM consumer sentiment.  Watch as usual for any signs of escalation in the Ukraine-Russia conflict.  The weekly, daily and 4hr RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains.  I am looking to go long in the green zone (of the daily chart), targeting the red zone for Wednesday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).  Click here for analysis on EURUSD, COCOA

GBPUSD Weekly/Daily/4hr

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(FXB)