GBP/USD has escaped from the minor sideways movement. It may resume the short term rebound. It is trading at 1.1882 level, right above the 23.5% level and above the weekly Pivot Point, signaling that the bulls are in control.
It remains to see how GBP/USD will react to the BOE meeting. Analysts are expecting the Official Bank Rate to remain unchanged after today's meeting, the MPC members could vote unanimously for this decision. The pair could resume the current bullish movement if the Bank of England maintains the current monetary policy.
GBP/USD returned to the 23.6% retracement level and above the Pivot Point (1.1821) and it seems that the breakout from the minor range is confirmed, the next upside target is seen at the 38.2%, the weekly R1 (1.2233) could be used as a potential target as well.
The pair failed to retest the lower median line (LML) of the red ascending pitchfork in the last attempt, another high. A breakout above the 1.1973, could validate a further increase towards the median line (ML). The median line acts as a magnet and attracts the price when a pitchfork is confirmed.
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We may have a short term long opportunity if the price consolidates above the 23.6% level and above the weekly Pivot Point (1.1821), the targets are seen at the 38.2% level, at R1 (1.2233) and higher at the median line (ML) of the ascending pitchfork.
A further increase could be invalidated if the BOE adds more stimulus measures and if the pair fails to make another high or to stabilize above the PP and above the 23.6%. A broader upside movement will be confirmed only after a valid breakout above the median line (ML).
