- Braking above the former highs indicates a further growth towards the R2!
GBP/USD is trading higher at 1.3783 and most likely it will hit the 1.38 psychological level soon. Its breakout above the former high signals a further growth ahead. The Pound has taken full control as the greenback is weakened by USDX's bearish momentum.
USD depreciates aggressively versus its rivals due to the poor Non-Farm Payrolls data reported on Friday. Adding only 49k jobs in January, the US economy disappointed the USD bulls. GBP/USD has taken advantage of this situation validating once again that it could climb way higher.
GBP/USD Breakout Means Continuation!
It has finally managed to close above 1.3745 registering a new higher high. The immediate upside target stands at the R1 (1.3801). Also, the rate is expected to approach and reach the sixth warning line (wl6) after several rejections from the fifth warning line (wl5).
Breaking and stabilizing above the sixth warning line (wl6) could offer us a new long opportunity. Technically, the current upwards movement was expected after the major bullish engulfing printed on February 4, 2020.
Forecast!
The breakout above 1.3745 and the new higher high represents a bullish signal. GBP/USD could slip lower to retest the broken level, the resistance has turned into support, before jumping way higher.
A valid breakout above the R1 (1.3801) suggests buying. GBP/USD could aim at the R2 (1.3875) or higher at the 1.39 psychological level. Personally, I believe that the uptrend will be safe as long as the rate is located above the S1 (1.3609).
