Overview :
On the H1 chart :
The GBP/USD pair continued to move upwards from the level of 1.3568. Since yesterday, the pair has risen from the level of 1.3568 (the level of 1.3568 coincides with the ratio of 50% Fibonacci Expansion) to the top around 1.3650.
In consequence, the GBP/US pair broke resistance at 1.3568, which turned into strong support at the level of 1.3568. In the H1 time frame, the level of 1.3568 is expected to act as major support today.
Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish market. The price is still above the moving average (100).
From this point, we expect the GBP/USD pair to continue moving in the bullish trend from the support level of 1.3568 towards the target level of 1.3703.
If the pair succeeds in passing through the level of 1.3703, the market will indicate the bullish opportunity above the level of 1.3703 so as to reach the second target at 1.3760. Next objective 1.3814.
According to the previous events, the GBP/USD pair is still moving between the levels of 1.3568 and 1.3814; so we expect a range of 264 pips in coming three days.
At the same time, if the GBP/USD pair is able to break out the level of 1.35233, the market will decline further to 1.3418 (last bearish wave).
Four-hour chart :
The GBP/USD pair will continue rising from the level of 1.3578 today.
The support is found at the level of 1.3578, which represents the 78% Fibonacci retracement level in the H4 time frame. Since the trend is above the 78% Fibonacci level, the market is still in an uptrend.
Therefore, the GBP/USD pair is continuing with a bullish trend from the new support of 1.3578.
The current price is set at the level of 0.6695 that acts as a daily pivot point seen at 0.6695. Equally important, the price is in a bullish channel.
According to the previous events, we expect the GBP/USD pair to move between 0.6671 and 0.6749. Therefore, strong support will be formed at the level of 0.6695 providing a clear signal to buy with the targets seen at 1.3703.
If the trend breaks the support at 1.3703 (first resistance), the pair will move upwards continuing the development of the bullish trend to the level 1.3760, then reach 1.3814 in order to test the daily resistance 3.
The stop loss should always be taken into account for that it will be reasonable to set your stop loss at the level of 1.3418.
