GBP/USD analysis (July 17)

The picture on the Pound is slightly different from the Euro.
After a bounce on its lower bollinger band, the GBP/USD has made an impressive rally (in one day precisely) to reach the 1,62 level.
The market easily broke above previous high (1,6140) and validated a cup&handle pattern. From that point and considering the momentum, we have a slight bullish bias. “Slight” because things are not that easy. The daily studies are entering in the overbought zone while the market is testing a descending trendline playing offering a significant resistance.
A wise approach would be to wait for a daily close above 1,62 which would validate a breakout to the upside. In this event, the immediate target is 1,6250 (daily bollinger band and weekly 20 moving average). 1,64 would be the following objective.
A confirmation of the trendline though would expose a new test of 1,59. We will keep a close eye on friday low at 1,6080 which is first barrier to clear for a bearish resumption.
Patience and confirmation will be the key words over the coming days.