GBP/USD: More gains announced by price action!
GBP/USD is challenging a strong dynamic resistance, a valid breakout will suggest buying again. Technically, the pair is expected to resume its upside movement after ignoring 1.3170 static resistance.
The Pound retains full control after better than expected UK’s inflation data. GBP/USD should approach fresh new highs after making another higher high. Also, USDX’s sell-off helps the pair to resume its upside journey.
GBP/USD has managed to reach the second warning line (WL2) of the descending pitchfork, but it should take this resistance out after the aggressive breakout above 1.3170 former high.
The pair is bullish as long as the rate stays above the 1.3170 level, a valid breakout above WL2 will signal further rally towards the 350% Fibonacci line. We cannot exclude a minor drop to retest the 1.3170 before going higher.
- GBP/USD Trading Tips
Buy from above 1.3267 today’s high with a potential target at the 1.3400 level, at the 350% Fibonacci line. The major target is at the upside 50% Fibonacci line of the ascending pitchfork.
A further upside movement could be invalidated by a drop below 1.3170 level, if the pair will fail to stabilize above the WL2.
The material has been provided by InstaForex Company – www.instaforex.com