GBP/USD is trading in the red according to the H4 chart, it has reached a dynamic resistance and now it could retreat a little. The bias is bullish, so a minor decline could attract more buyers and more bullish energy.
The pair slips lower as the USD was boosted by USDX's current rebound. Don't forget the fact that GBP/USD is bullish and it is expected to climb higher, so selling from the current resistance level is not a really good idea as long as the US Dollar Index is under massive pressure.
GBP/USD has changed little in the last hours, it has touched the 250% Fibonacci which represents an important upside obstacle. Taking out this resistance, GBP/USD will validate potentially upside movement towards the second warning line (WL2) of the former descending pitchfork.
I want to remind you that the breakout above the median line (ML) of the major black ascending pitchfork has confirmed a broader growth on this pair, so the rate could eliminate the 250% resistance anytime.
- GBP/USD Trading Tips
Buy a valid breakout (close above and retest) above the 250% Fibonacci line, the next upside target is located at the second warning line (WL2).
Selling could be activated by a false breakout with huge separation above the 250% Fibonacci line, the median line (ML) is seen as downside target, major support.
