GBP/USD is trading in the green again and it could validate further growth if it takes out the immediate obstacles. The pair could resume its uptrend ahead of the FOMC and BoE. The fundamental events and high impact data could bring high volatility on this pair during this week.
Also, the Brexit talks and rumors cold bring sharp movements on this pair. Technically, we need confirmation that GBP/USD will continue higher in the upcoming period.
The pair was into a corrective phase which seems over. So, GBP/USD has turned to the upside showing strong bullish signs.
GBP/USD Under Bullish Pressure!
GBP/USD has opened with a huge gap up and now is challenging the warning line (wl3), the R1 (1.3419), and the channel's resistance line. The aggressive jump above the Pivot Point (1.3276) level signals strong buyers.
Still, only a valid breakout above the mentioned upside obstacles really confirms a strong swing higher. As you can see, GBP/USD is trapped between the second and the third warning lines (wl2, wl3), the rate has retested the wl2 and now is pressuring the wl3 dynamic resistance.
Personally, I believe that a bullish closure above somewhere above 1.35 suggests a larger growth ahead. Now, you should be careful because any false breakout with great separation above the near-term resistance levels or any other reversal pattern could invalidate the bullish scenario and could bring a short opportunity.
- GBP/USD Trading Tips & Conclusion
Bullish Signal - jumping and closing above 1.35 brings a long opportunity with a potential upside target at the R3 (1.3762) level.
