GBP/USD accelerates its bullish momentum after an aggressive breakout above the dynamic resistance. The current rally will continue if the USDX reaches new lows in the short term.
The rate escaped from an upward channel, so further gains are expected. Today's US data could be decisive for the greenback as some poor figures reported by the ISM Manufacturing PMI, Final Manufacturing PMI, or by the Construction Spending could boost the pair.
GBP/USD challenged the R1 (1.3451) static resistance after taking out the dynamic resistance represented by the 350% Fibonacci line. The breakout suggests more gains. R2 (1.3555), and the 50% Fibonacci line are seen as potential targets.
I said in my analysis that GBP/USD would climb towards the upside 50% Fibonacci line after a fall to reach and retest the median line (ML) of the major ascending pitchfork.
- GBP/USD Trading Tips
The breakout above the 350% Fibonacci line represents a bullish signal. Closing above the R1 (1.3451) suggests further growth towards the R2 (1.3555) level. The 1.3600 psychological level and the 50% Fibonacci line could be used as upside targets as well.
