Overview :
The GBP/USD pair will continue rising from the level of 1.3780 in the long term. It should be noted that the support is established at the level of 1.3780 which represents the daily pivot point on the H1 chart.
The Relative Strength Index on the four-hour chart is just above 60 – indicating overbought levels. However, momentum remains to the upside and the currency pair is holding above the 50 and 100 Simple Moving Averages. The RSI is still signaling that the trend is upward as it remains strong above the moving average (100). This suggests that the pair will probably go up in coming hours.
All in all, there is a chance that GBP/USD disregards overbought conditions for some time.
Accordingly, the GBP/USD pair is showing signs of strength following a breakout of the highest level of 1.3913.
the pair rose from the level of 1.3780 (weekly support) to the top around 1.3913. Today, the first support level is seen at 1.3780 followed by 1.3698, while daily resistance is seen at 1.3913.
So, buy above the level of 1.3900 with the first target at 1.3981 in order to test the daily resistance 2.
If the trend breaks the second resistance level of 1.3981, the pair is likely to move upwards continuing the bullish trend development to the level 1.4050.
The level of 1.4050 is a good place to take profits. Moreover,
On the downtrend: If the pair fails to pass through the level of 1.3913, the market will indicate a bearish opportunity below the level of 1.3913.
The market will decline further to 1.3780 and 1.3698 to return to the daily support. Moreover, a breakout of that target will move the pair further downwards to 1.3565 in order to form the double bottom.
