- Friday's rally, the strong bullish candle, signaled that GBP/USD could approach and reach fresh new highs!
GBP/USD has climbed as much as 1.3914 level today and it seems poised to continue higher. It has registered a new higher high signaling that the swing higher should resume. Technically, the price has reached a static resistance level so we cannot exclude a minor retreat before it jumps higher.
The greenback has depreciated aggressively versus its rivals on Friday due to the Prelim UoM Consumer Sentiment drop from 79.0 to 76.2 points, even if the specialists have expected an increase to 80.8 points.
On the other hand, the Pound was boosted by the UK GDP, Prelim GDP, Goods Trade Balance, Index of Services, Prelim Business Investment better than expected data.
GBP/USD At New Highs As Expected!
GBP/USD reached the R1 (1.3914) level which represents an important upside target. Closing above it signals further gains ahead and could bring a long opportunity as well even if the price is traded at new highs.
Last week I've told you in my analysis that GBP/USD will be expected to resume its bullish movement if it stabilizes above the sixth warning line (wl6) and above the Pivot Point (1.3796).
The rate has retested these levels and now it seems determined to approach and reach fresh new highs.
Trading Tips!
Buy a bullish closure above the R1 (1.3914) and above the 150% Fibonacci line. Use the seventh warning line (wl7) and the 1.4000 psychological level as upside targets.
