GBP/USD rally not that impressive in the bigger picture

The pound is 1.5 cents above its session low of 1.5448 as it flirts with 1.5600 but despite the big move in US trading, the daily chart is still littered with challenges.

The main zone of resistance is 1.5675/1.5700, which repeatedly proved too much to scale in July. Secondarily, Friday's low and close were both below the July 23 low, that's a concerning signal.

The good news is that in the bigger picture, the series of higher lows is continuing. The best news of all is that the 100-day moving average will cross above the 200-dma any day in a bullish golden cross. The last time that happened was Sept 2013 and it was followed by 1000 pip rally in the next three months.

The upside from a golden cross can take weeks to materialize so I'm cautious until the July highs break. But if they do, a rally to 1.5900 is likely and significantly more is possible.

GBPUSD daily with 100 and 200-dma