With the British pound on a bullish tear in anticipation of an inflation-cooling rate hike by the Bank of England, it’s a good time to look at the currency’s charts. Last week’s pop through a 1.6894 midpoint resistance on the daily chart all but guarantees that the 1.7108 target with which it’s associated will be reached.  There will be one intermediate-term rally target left after that — 1.7210, derived from sliding the point ‘A’ low down to an important bottom recorded in late March.

On the longer-term charts, the pound has been in a bear market since November 2007, with price action since 2009 suggesting another big leg down that could reach $1.04(!). It wouldn’t take much to negate this target, however — just a rally to 1.7044. But it would require quite a bit more — specifically, a print at 1.8625 (see inset), to decisively end the bear market.