GBP/USD technical analysis for December 4, 2015

The GBP/USD pair has made a bullish reversal after touching the lower boundary of the long-term downward sloping wedge. There is more upside to be expected towards 1.5280, but traders should now be very cautious as we are mid-range between support and resistance.

In the 4-hour chart, prices have entered the Ichimoku cloud turning short-term trend to neutral from bearish. Short-term support is found at 1.5080 and below that at 1.5030. Resistance is seen at 1.5170 and next at 1.5280.

Blue lines - downward sloping wedge

The daily chart above shows the downward sloping wedge and the support levels we bounced off in a clearer way. I believe we should expect more upside in this pair over the next week as the Stochastic oscillator has just turned above 20 and has enough room to travel towards the overbought levels.

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