GBP/USD is trading in the green and it seems determined to ignore the near-term resistance levels and to continue its growth. The bullish pressure is high as the USD is weakened by the USDX’s drop.
The upside momentum could be accelerated by some poor US data later today, the ISM Manufacturing PMI could increase from 41.5 to 43.5 points, the Final Manufacturing PMI is expected to remain steady at 39.8, but unfortunately, the Construction Spending could drop by 6.5% in April.
- GBP/USD Channel breakout!
GBP/USD has managed to jump above the inside sliding parallel line (sl) of the minor orange ascending pitchfork, a valid breakout will confirm an increase towards the median line (ml) and towards the 61.8% level.
The failure to come back to reach and retest the lower median line (lml) of the orange ascending pitchfork has announced a potential upside breakout and a further upside movement.
GBP/USD has increased within an up channel, between the lower median line (lml) and the sliding line (sl), so an upside valid breakout from this channel, above the sliding line (sl), will suggest buying and a significant increase.
- GBP/USD Trading Tips
GBP/USD has retested the 50% retracement level, it has ignored rallied through the PP (1.2340) and now is trading above the sliding line (sl), a valid breakout signaled and confirmed by a retest, or if the pair will close above the 1.2414 high will bring a long opportunity with a first target at the median line (ml) and higher at the 61.8% level.
A valid breakout above the next upside targets will confirm a larger increase towards the upper median line (uml) of the ascending pitchfork and towards the R2 (1.2865). GBP/USD further increase could be invalidated only if the current candle closes in the red, below the sliding line (sl), or if the price makes a bearish engulfing here.
However, a larger downside movement will be confirmed only if GBP/USD decreases and if it makes a valid breakdown below the lower median line (lml) of the ascending pitchfork.