The Pound gains ground against U.S. Dollar since yesterday. The GBP/USD pair is trying to get to the test of the nearest resistance level at 1.3469 (1st resistance, 78% of Fibonacci retracement levels).
The main trend is up according to the daily swing chart. Hence, momentum has been trending higher since Monday, following the formation of a closing price reversal top.
A trade through 1.3469 will negate the closing price reversal top and signal a resumption of the uptrend.
The Pound is trading higher against the U.S. Dollar on Wednesday, supported by optimistic economic sentiment data from UK.
However, the threat of a no-deal Brexit has not deterred the Pound from taking advantage of the weaker US Dollar.
A move above the resistance at 1.3469 will push the GBP/USD pair towards the next resistance level at 1.3538. There are no important levels between 1.3381 and 1.3538 so this move may be fast.
The long-term 1.3538 resistance level is once again proving to be the undoing on GBP/USD's attempts to push higher.
Today, the GBP/USD pair has broken resistance at the level of 1.3381 which acts as support now.
The pair has already formed minor support at 1.3381.The strong support is seen at the level of 1.3298 because it represents the weekly support 1.
Equally important, the RSI and the moving average (100) are still calling for an uptrend. Therefore, the market indicates a bullish opportunity at the level of 1.3381 in the H1 chart.
Also, if the trend is buoyant, then the currency pair strength will be defined as following: GBP is in an uptrend and USD is in a downtrend. Buy above the minor support of 1.3381 with the first target at 1.3469, and continue towards 1.3538 (the weekly resistance 2, double top).
On the support side, the nearest support level for the GBP/USD pair is located at 1.3381. If the GBP/USD pair declines below this level, it will move towards the next support at the 100 EMA at 1.3344. A move below the 100 EMA will open the way to the test of the support at 1.3298.
On the other hand, if the price closes below the minor support, the best location for the stop loss order is seen below 1.3381; thus, the price will fall into the bearish market in order to go further towards the strong support at 1.3298 to test it again. Furthermore, the level of 1.3224 will form a double bottom.
