(05 OCTOBER 2018)GBP/USD:Bullish bias above 1.2995.

Pivot (invalidation): 1.2995

Our preference

Long positions above 1.2995 with targets at 1.3040 & 1.3060 in extension.

Alternative scenario

Below 1.2995 look for further downside with 1.2970 & 1.2950 as targets.

Comment

Even though a continuation of the consolidation cannot be ruled out, its extent should be

limited. The pair has broken above the upper boundary of a bearish channel drawn from

September 27.

(By Swissquote TRADING CENTRAL)