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Towards the end of last year we highlighted a key trendline resistance in GBPUSD. This trendline, drawn off the 2007 high, had remained intact until December where it was breached following the break above 1.3372.
- A strong monthly close in December reinforced the bullish breakout and so far in January, price has remained above the trendline - it currently intersects at 1.3322.
- These developments highlight a reversal of the downtrend that has been in place since the Nov 2007 highs.