This week, we will look at a long-term GBPUSD timeframe to show an important development that traders are better to be mindful of (especially cable bulls).

That timeframe is the monthly. And the important thing to watch is the big resistance in the 1.45 wider area. As you can see on the chart below, the 1.45 area connects its significance to the 2018 highs and 2016 Brexit vote. But that’s not all. The 1.45 area in GBPUSD has a history of technical significance as far back as the 1990s and 1980s (1.40-1.45 is the actual wider area where the price has reversed).

The above should at least make the bulls careful in adding to their long-term long positions here. Nonetheless, the price is unlikely to reverse so suddenly and sharply just because this area has been reached. But it probably does mean that we are not going to break higher easily.

The 1.38 -1.40 area is the nearest support zone that should hold in order to keep the uptrend and the bullish channel intact.