GBP/USD Breakout Brings Continuation
The Pound has taken full control and leads the pair towards fresh new highs. GBP/USD is trading at 1.3374 and it seems determined to approach and reach new highs. It has managed to pass above some major resistance levels, so further growth is announced.
GBP/USD could continue higher as the UK’s data has come in better than expected. The Flash Manufacturing PMI increased from 53.7 to 55.2 points, even if the economists have expected to see a drop to 50.5 points, while the Flash Services PMI plunged into the contraction territory, reaching 45.8 points, but it was reported higher versus 43.2 expected.
The US is to release its manufacturing and services data but is hard to believe that the sentiment will change.
GBP/USD Edges Higher!
If you remember, GBP/USD should jump higher if the price closes and stabilizes above the channel’s upside line, the warning line (wl2), and above the R1 (1.3341).
The price has passed above all these obstacles, so a bullish closure could validate the breakout and could signal further growth. GBP/USD could still come back to test and retest the broken levels before resuming its upside momentum.
- GBP/USD Trading Conclusion
Closing and stabilizing above the R1 (1.3341) represent a long opportunity with a target at the third warning line (wl3), around 1.3500 psychological level.
The material has been provided by InstaForex Company – www.instaforex.com