Forex: GBP/USD: Expect a breakout higher this week, says Mizuho

The Pound has remained moving in a range from 1.5000 to 1.5160 during the last two days, after having rallied from levels around 1.4600 at the beginning of the previous week; Nicole Elliott, senior technical analyst at Mizuho Corporate Bank expects the Pound to squeeze higher this week.

A break higher is imminent: “Consolidating at the very top of this year’s trading band and because we have held in such a tiny range for the last two days a break higher is imminent. Expect another squeeze higher this week and maybe all month, increasing as more currencies start seriously pulling in the same direction.”

Concerning strategy, advices to go long at 1.5145: “Buy at 1.5145; stop below 1.4800. Add to longs on a sustained break above 1.5175 for 1.5375 short term and then 1.5725/1.5800.”