GBP/USD Retracing After Bullish Breakout, Buy Level Approaching

The GBP/USD has broken out of a long-term descending parallel trendline. This speaks the slow degradation of the U.S. Dollar that has likely started. However, nothing goes straight up or straight down. This is fantastic for investors who may have missed the initial breakout.

The trade on the GBP/USD is to wait for the retrace to the 'scene of the crime'. This has already started. The scene of the crime is the trendline that has been broken to the upside, but sees price come back to it from the other side. It now works as support.

Look to buy the GBP/USD at 1.31 for a likely move north of 1.58.